The Belarusian government puts persistent efforts into reducing the interest rate on loans for commercial entities, Prime Minister of Belarus Andrei Kobyakov said after working trip to Minsk Region on 2 December.
Andrei Kobyakov visited the industrial engineering company OOO Saleo, the plastic products manufacturer ZAO Amkodor Elastomer, and the packaging materials manufacturer Evipak Industries. “Those are medium-sized companies with some resilience against economic cataclysms. They make high-tech science-intensive products that perform an import-substituting function because they sell well domestically and have a good export potential at the same time. It is the kind of development that we need in order to gain in quality terms in a guaranteed manner,” said the Prime Minister.
Andrei Kobyakov remarked that such enterprises are supposed to account for at least two thirds of economic growth in 2020. In his words, the management of these companies drew attention of the government to one essential issue — their inability to borrow money as cheaply as possible. “It is a problem that bothers the entire economy and needs a solution. The government works persistently to resolve it. At the beginning of the year the interest rate on new loans in Belarusian rubles was close to 33% per annum. At present the figure stands at 21-22%. I know a number of enterprises that borrow money at a much lower interest rate — 17-18%. We should allow every credit-worthy company to borrow money at 17-18% by the end of the next year,” stated the Belarusian head of government.
Andrei Kobyakov remarked that all the prerequisites are available this year for hitting the 12% inflation target. “I think the figure will be even less than that. Next year we intend to hit a one-digit target — 9% at most. We can definitely bring the money and credit system and its role in economic processes to acceptable levels within a year or two. The accomplishment will become the foundation for healthy full-value economic growth,” he summed up.