Income from money in banks in developed countries is minuscule - less than 1%. However, loans are also cheap. In general, money should work in the economy. One of the ways to do it in Belarus' current situation is to borrow money from the people for a guaranteed long term. Banks offer high interest on these deposits. If people place money only for a short term, they have to pay incomes from the income.
Since April 1, deposits conditions in Belarus have changed. The main innovation is that now deposits are divided into two kinds - revocable and irrevocable. This means that now depositors have a choice.
The first allows you to remove or withdraw money before the end of the contract. But in terms of financial attractiveness, it is inferior to the second kind of deposits - irrevocable (for a long period). You can withdraw money from these deposits only after a certain period of time.
However, in case of emergency, you can withdraw money even from such irrevocable deposits. Each application will be considered by banks individually.
Belarusians need to know that only interest income is the tax base, not the whole sum of the deposit.
Klim Fomkin, head of development and implementation of banking products:
If a customer opens a deposit after April 1, 2016 in Belarusian rubles and money is deposited for less than one year, the client will need to pay an income tax of 13%. When it comes to deposits in foreign currency, only the period differs (in these case, it is 2 years instead of one). If your deposit is more than two years old, you will not pay any tax on interest income.
Previously signed deposit contracts will remain in force and no changes will be introduced in them. Banks will themselves calculate the amount of taxes one has to pay. Citizens will not have to file any declarations. All this is done to stimulate people to invest for a longer term.
The logic is simple: you have to give the economy an opportunity to invest and then the money will come back with a profit. According to the National Bank, now Belarus has BYR 28.5 trillion of fixed-term deposit accounts, about 80% of which do not exceed one year. Among the most popular fast deposits are those for 90 days.
Vadim Iosub, senior analyst of the company Alpari:
If the deposit period is longer and more predictable, the majority of the funds raised can be directed to the economy in the form of loans.
Georgy Grits, a financial analyst:
Expensive short resources is not something the economy needs. Why face any difficulties? It is of course easier to put money in the bank under state guarantees (and we have substantial guarantee of the state, especially for deposits of private persons), and then withdraw the money. This principle was applied in the XIX - XX centuries.
In fact, the income tax on interest income is a measure that encourages people to invest the so-called "long money", which makes them plan at least a year or two ahead. This is the way every developed and prosperous lives. The set of benefits Belarusians had was unique and unprecedented in the world.
Financiers are confident that investors will soon understand that 13% is quite an adequate price for the opportunity to continue to make "short money", given how susceptible financial market is to external factors.
Georgy Grits, a financial analyst:
If you take the resource base of deposits, short-term loans make up somewhere around 40% (in some banks about 60%). That is, three months. Real investments do not return in 1-3 months. If we don't change the situation with expensive borrowed resources by banks, it will be impossible to do anything.
The National Bank calls the decree a factor of stability of the financial market. That is, the banking sector will thus contribute to the overall economic stability of the country.