OREANDA-NEWS. January 14, 2011. President Alexander Lukashenko met with the Chairman of the Board of the National Bank of Belarus, Pyotr Prokopovich, to receive his report.

The Chairman of the Board has informed the President that all the main targets set forth in the Basic Guidelines of the State Monetary and Credit Policy for 2010 were met. "We made sure that the targets that were absolutely essential for the development of the economy were accomplished first. This included a stable rate of the national currency, stable situation in the foreign currency market, provision of loans and credits for businesses. In effect, banks have provided 40 per cent more loans for business since the beginning of 2010," said Pyotr Prokopovich. Last year, he added, the interest rate policy was very efficient, and the payment system functioned efficiently too. "This means that last year the economy of Belarus got from the banking system everything that the real production sector of the economy needed," said the chief of the National Bank.

In addition, a certain work was done to improve the banking system itself. The resource base was expanded; banks were able to increase their capital; all the target indicators were met. That gives grounds for hope that this year the banking system will meet its planned targets.

Pyotr Prokopovich has expressed confidence that this year the National Bank will manage to increase the foreign exchange reserves as planned. "This year we have every opportunity to accomplish this task. This is due to the fact that we are expecting a much better foreign trade balance, much bigger inflow of foreign exchange from the export of goods and services," he said. Under the Basic Guidelines of the State Monetary and Credit Policy for 2011, Belarus' foreign exchange reserves are about to expand by no less than USD 1.2 billion.

In 2010 Belarus' foreign exchange reserves, as calculated in accordance with IMF techniques, shrunk by 11 per cent to USD 5,030.7 billion. The reserves should have risen by USD 0.5 to USD 1.83 billion in 2010, in accordance with IMF standards. The chief of the National Bank has explained that the reason for missing that target was the population's excessive demand for foreign currency, particularly at the end of the year. "The demand has subsided now. Last year we sold USD 1.5 billion to the population. This money was taken from the foreign exchange reserves, and it is in fact in people's homes now instead of working for the republic, for the economy," said Pyotr Prokopovich.