OREANDA-NEWS. The National Bank of Belarus (NBB) will continue a tough monetary policy in 2014: Interest rates will be lowered gradually, ensuring the attractiveness and safety of savings in the national currency. The refinancing rate will be set at the level necessary to achieve the price stability, which will largely depend on the prevailing macroeconomic conditions.

A declaration to this effect was made by the NBB press-service following the NBB board meeting on January 30.

“Lending to banks will be carried out with due account of build-up of the banks' resource base and the need to maintain macroeconomic balance in the economy. The volumes and sources of financing the government programs and arrangements will be balanced with the economy's resource capacities. On the whole, banks' corporate credit portfolio is projected to increase by 16-19% in 2014,” the NBB said.

Special attention will be given to small and medium-sized business. “This category of clients must be a priority for all banks without exception, in terms of the quantity and quality of services, and in terms of the availability of loans,” said the National Bank.

Belarus' monetary policy will retain a strategic focus on preserving price stability as a basis for balanced economic growth. The main objective is to slow the growth of consumer prices down to 11%. The National Bank will use all the instruments at its disposal. Decisions on their use will be made based on the prevailing internal and external macroeconomic conditions.

The National Bank and the Government of Belarus will be working jointly to maintain the level of international reserve assets. The parties have defined the sources of replenishing the country's gold and FX reserves, the NBB said.

The NBB points out that in 2013 Belarus' international reserve assets declined in view of the payments on the country's debt obligations, aggravating foreign economic conditions for the Belarusian economy, and the decline of gold prices in the international market. In these circumstances, the Government of Belarus decided to draw additional foreign currency resources. As a result, the country's international reserve assets amounted to USD 6.7 billion at the end of 2013.

In 2013 excessive demand for foreign currency led to the weakening of the ruble against other currencies. In 2013 the exchange rate of the Belarusian ruble fell by 11% against the US dollar, by 15.3% against euro, and 3% against the Russian ruble.