Refinancing rate hike could trigger a new round of repression
Yesterday the news of the refinancing rate hike to 8.5% from 21 April was actively discussed in the media.
What is wrong with this and what does it have to do with the new repression?
The non-obvious, albeit uncomplicated, scheme of a poverty-stricken regime is as follows:
1) Inflation continues to rise in spite of the imposed price controls. In fact, the refinancing rate is now below inflation. This makes it very difficult to grant new loans to loss-making state enterprises.
2) The current rate increase aligns it with the current inflation rate and helps to temporarily smooth out the effects of the hidden issue in the second half of 2020. This would allow the printed money to be used for a partial resumption of borrowing, albeit at a higher interest rate.
3) State-owned enterprises desperately need these loans to pay taxes, which are due in the 20s of April.
4) And taxes are very much needed by the regime — to pay for the work of the security forces and to continue the repression. The regime is very afraid of the protest spring and knows that the truncheons do not work for free. But it has less and less money for them.
And it is not even his money, but OUR money. It is the money that lies in the deposits and card accounts of the Belarusians, which the banks will use to issue new loans to unprofitable enterprises and provide salaries to law enforcement officers.
Therefore, our response to the rate hike and the scheme described above can only be one — we continue the ATM-exchange-bank action:
— withdraw all money from accounts;
— buy as much currency as you can;
— and take all deposits from banks.
We must say a firm NO to loans and repression at our expense!
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