Page 68 - bne_newspaper_February_02_2018

68 I New Europe in Numbers bne February 2018
Belarus gross intl reserves $mn
Belarus reserves ended 2017 at $7.3bn
Russia GIR vs Reserve, National Welfare funds $bn
Belarus' gross international reserves (GIR) ended 2017 at $7.3bn, according to the National Bank of the Republic of Belarus (NBRB).
The republic managed to boost its reserves with a $1.4bn bond issue in 2017 that was well received by investors and helped cover all its refinancing needs of $3.4bn in 2018. The bond was in two parts. The yield of the five-year tranche, which raised $800mn, was 7.125%, with the 10-year tranche raising $600mn
at 7.625%. Aggregate investor demand for the securities exceeded $3.1bn. Belarus has now mandated Citigroup and Raiffeisen Bank International for further investor meetings in the US and Europe.
Russia's Reserve Fund ceases to exist
Russia’s rainy day Reserve Fund has ceased to exist as of January 1, the Ministry of Finance reported. Set up in 2008 in the boom years, the Reserve Fund was a store of money designed to top up the budget in times of crisis, particularly when oil prices fell below the budget break-even price of $70 now and $115 in the boom years. The fund had only $17bn in it at the end of 2017 and has now all been spent.
What remains in the fund has now been merged with the National Welfare Fund (NWF), a second reserve fund that was supposed to be used to cover pension payments in the mid-term. The NWF has been retasked as a general fund that can be used to top up the budget and had $66.94bn in it as of the start of December.
Russians' borrowing grows ahead of savings
Russians have given up on saving and are borrowing more instead to fund their lifestyle, data from the Central Bank of Russia (CBR) shows. Russians borrowed more than they deposited in 2017 and borrowing from banks has doubled over the last eight years since the crisis began. Two thirds of Russians say they have no savings at all, up from just over half in the last year.
Russians borrowed from banks RUB12 trillion ($210bn) in January-November 2017, up RUB1.2 trillion or 10% year-on-year, while their deposits, although more than twice as much at RUB25 trillion, were up just by RUB800bn, which corre- sponded to just a 3% increase.
Latvian CPI growth slows down to 2.2% y/y in December
Latvia's consumer price index (CPI) grew 2.2% y/y in December, data released by the country's Central Statistical Bureau (CSB) on January 10 showed.
The reading means price growth slowed down from the 2.7% y/y growth rate seen in November. Still, price growth appears to be under demand-led pressure from the tightened labour market pushing up wages; the return of EU-funded investment also plays a role.
Inflation has now grown for 16 months straight, in line with forecasts for a decisive pick-up in CPI this year after the index barely moved in 2016. However, inflation in all the Baltic states started to decline in the last quarter of 2017 as an economic boom there continues.
Russia retail bank loans vs real disposable income RUB
Latvia CPI, annual change in %
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