lukashenko Demands More Money from Banks

lukashenko has increased pressure on the belarusian banking sector. Against the background of serious problems in the economy, the authorities are looking for sources of resources, and banks have become one of the key targets.

The first demand is to provide loans for state priorities. lukashenko has stated that banks are not providing sufficient financing for the economy. The decline in the share of bank loans in investments from 27 % in 2014 to 12 % in 2024 is seen as a serious miscalculation. From now on, financial institutions must not only issue loans but also effectively instruct businesses on how to reduce costs. Old recipes are also being used, in particular the creation of financial and industrial groups, where banks and enterprises are artificially united for the sake of investment.

The second requirement is to accelerate financial digitization and increase the share of cashless payments. Formally, this refers to the “technological future”, but in reality, it means total control over cash flows. The main value of digital currency for the regime is tracking the movement of funds from the budget to the final recipient. Minsk is also ready to develop grey financial zones, including cryptocurrencies, in order to circumvent Western sanctions and conduct export settlements outside the control of international banks.

The third issue is inflation, which, according to official data, is one and a half to two times higher than the target rate. lukashenko demands that the trend be reversed immediately, again relying on administrative methods. Banks are effectively instructed to restrain prices, replacing market mechanisms with manual regulation.

Another initiative is to stimulate demand for domestic goods by expanding consumer lending. The National Bank has set a target of at least doubling the share of loans for local manufacturers’ products by the end of the five-year period. However, this model only perpetuates inefficiency: companies receive guaranteed sales instead of motivation to improve quality.

Separately, lukashenko criticized banks for using profits “for purposes other than intended” and stressed that the money earned should be returned to the economy. In fact, the authorities have once again made it clear that the resources of banks are considered state property. As a result, financial institutions are assigned the role of the regime’s “wallet” – from lending to priority sectors to fighting inflation and circumventing sanctions.