OREANDA-NEWS. The time is ripe in Belarus to set up a macroprudential regulation system, reckons Professor Mikhail Kovalev, the Dean of the Economy Faculty of the Belarusian State University.

The scholar made a statement to this effect at the practical “Belarus' Budget and Finance System: Present Condition and Future Prospects”.

The scientist reckons the government should develop a new function in order to ensure the country's financial stability. Belarus needs a law to indicate government bodies responsible for coordinating the government's policy on financial stability. In some countries, this function be performed by the central bank, the Finance Ministry, or a vice premier.

There can be different configurations and distribution of functions, which all focus on financial stability. This is called macroprudential regulation, and the National Bank of Belarus has a department like that, Kovalev said.

The scientist referred to the growing trend in the global economy - the growing debt crisis.

“Every citizen of the world owes approximately USD 10,000. Our debt is around USD 38 billion, which makes a total of USD 3,800 per person. Debts cause a recession in developed countries. Things won't work right with money emissions, as the money does not go into the real sector. Mutual settlement is impossible as everybody owes mostly China and Asian states,” Kovalev said.