Aleksandr Lukashenko meets with NBRB Chairperson Nadezhda Yermakova

President of Belarus Aleksandr Lukashenko has met with Chairperson of the Board of the National Bank of the Republic of Belarus (NBRB) Nadezhda Yermakova to receive her report.

The meeting focused on the implementation of the state monetary policy and the national banking sector operation for the sake of developing the national economy.

The head of state underlined that January-May 2012 was affected by the small waves sent by the financial crisis of 2011.

According to the President, the Belarusian government is now fully in control of the situation. Some matters have to be addressed, including raising the GDP by 5.5% this year.

Aleksandr Lukashenko underlined the economy is working well and can sustain itself. Belarusian enterprises can ensure the reproduction of fixed assets. An effective economy can hit the GDP target.

The head of state warned against claiming that state property management is ineffective while private ownership is.

“The assumptions that we will not be able to increase the average salary up to $500 in equivalent are groundless. Many companies prove these allegations wrong. For example, the average salary in Minsk is nearing $500 and will rise further. Why others cannot do it? They must do it,” the President emphasized.

The head of state noted: “The average salary in the private sector should make up about $700, not $500 this year. The figure should exceed $500 at state-run companies. This should be done in earnest”.

“The talks that we lack something to make it happen are groundless. How come then almost all top executives, specialists and managers of private companies drive a Mercedes? What, they have no money to pay a decent salary to people? They do have it. Let them sell their Mercedes and pay salaries,” the President said.

The head of state also spoke about the state-run sector. “Look how much they spend. They should cut down on the prime cost and raise salaries to a decent level. It is not a fear of something, contrary to what our opposition and yellow press say. The only fear we have is the absence of decent salaries of workers”.

The President stated that the demand to increase the salary should be executed without fail. “Of course, this is the number one task for the Government, but the National Bank should not stay away from it, either,” the head of state said.

He emphasized that the execution of tasks in construction, including housing construction, is just as important. “Those are not secondary issues. We should also come to grips with the financial circumstances of the military, we are making some progress here, but we need to ramp up our efforts,” Aleksandr Lukashenko said.

Nadezhda Yermakova informed the President about the implementation of the monetary policy. In her words, the situation observed in January-March 2012 demonstrates the effectiveness of the policy they are pursuing to achieve macroeconomic stabilization. The national currency has gained 3.2% against the basket of foreign currencies.

The official said she believes the current economic situation and the financial system allow hitting this year’s GDP target. “We just have to work for it. At present the financial system has enough money to channel it into manufacturing, services, and construction,” Nadezhda Yermakova said.

The meeting touched upon effective use of credit resources made available for economy development. “Those are investment resources and turnover loans. It is important to use them effectively and make products. It is important to sell products instead of warehousing them”.

Nadezhda Yermakova said as the main financial regulator the National Bank of the Republic of Belarus practices a reserved approach to crediting the economy.

Aleksandr Lukashenko underlined the country’s main bank should play a larger role in the economy development and instructed to make sure all monetary management targets are hit.