On March 14, Lukashenka signed decree #93 “On additional measures to ensure the stable functioning of the economy”. The decree provides for some aspects of the economy functioning under sanctions, including the possibility of a technical default.
According to Lukashenka’s decree, which appeared back on March 14, the Council of Ministers was given the power to decide on the payment of dividends, introduce new taxes, determine the size of the base rent, and other things. Emergency measures can be taken by members of the government in the face of sanctions pressure on the country’s economy.
“In case of restrictive measures, imposed by unfriendly countries, providing for the actual “freezing” of investment projects implemented in Belarus, suspension of their financing and deprivation of technical capacity to conduct settlements on public debt in foreign currency, imposed on the territory of the Republic of Belarus, the Ministry of Finance, agent banks and other legal persons are entitled by decision of the Council of Ministers (its Presidium) to secure the obligations to such countries in national currency,” reads the article.
Among other things, the Council of Ministers has received the right to suspend the implementation of agreements to prevent double taxation. A separate paragraph of the decree provides for combating the export of capital from the country.
When a country cannot pay its debts to foreign countries or declares the payment in its currency, it faces a technical default.
