Leanid Zlotnikau: After Decree №7 Belarusians’ Deposits Can Turn Into Candy Wrappers

It’s getting harder for Lukashenka to take up foreign currency loans, and the new decree could be considered as a first step to limit the circulation of currency in the country.

A candidate of economic sciences Leanid Zlotnikau has analyzed the Decree № 7 "On Attracting Money to Savings (Deposits)" in an interview to Radio Svaboda.

The economist draws attention to the fact that the restrictions on deposits are introduced by a decree of Aliaksandr Lukashenka, although such issues could have been resolved through the amendments to the Banking Code.

"In fact, enslaving of the population is starting at the moment. It may well be the first step to limit the circulation of currency in the country. It is really difficult to understand why the decree was signed and why there is a need to impose such restrictions. After all, a client and a bank can write anything they want in the framework of their agreement,"— the expert said.

Zlotnikau does not recommend people to bring money in banks under such conditions.

"I would definitely say that it is no good to make deposits when they could not be withdrawn before the end of the contract’s term. After all, the economic situation in Belarus remains unstable, Lukashenka does not want reforms, and it is getting increasingly harder to take loans and borrowings. So I do not see how the situation in the Belarusian economy could improve. And if the situation gets worse, the government may limit the circulation of foreign currency. There was the Soviet Union, and we have the experience of older generations, who subscribed to government bonds, and then those bonds became mere wrappers. And we are following the same path," — the economist says.