The National Bank continues to gradually reduce its refinancing rate. The latest reduction, which occurred in August 2014, may help make receiving financing for legal entities easier. And yet, despite their best intentions, these steps contribute to the accumulation of macroeconomic imbalances in the country. An analysis of the pros and cons have forced the Belarusian authorities to come up with an agreement that will normalise trade relations with Ukraine. The possibility of a real deterioration in their mutual trade relations has encouraged the officials in Minsk to push for the removal of all announced limitations imposed on Ukraine.

Belarusian Economic Research and Outreach Center BEROC organized a two class series "Corporate Financial Policy: the Optimal Composition of Debt and Equity Financing” by Elena Loutskina, PhD (University of Virginia), that took place at IBB on August 8, 2014.

For the first time over the last six months, in June Belarus saw an increase in its foreign exchange reserves. This growth was due to the issuance of a bridge loan by Russian VTB Bank. At the same time, the overall amount of foreign exchange reserves remains relatively low, a problem which has been influenced by an increase in foreign debt repayments this year.

The economy of Belarus is showing signs of rising levels of output with most industries increasing their overall output figures throughout May. At the same time foreign and domestic investment demand are exhibiting signs of recovery. However, this recovery does not itself necessarily signal a return to high output growth. The growth rate is likely to remain weak in the coming months and a new challenge – climbing inflation – might hurt the economy.

"Belarusian Yearbook 2013" is newly available.