Belarus Keeps Cutting Rates on Loans

26.10.2010 16:14
Архив Редакция

Belarusian banks will continue to cut interest rates on loans. This was stated by Deputy Chairman of the National Bank of Belarus Nikolai Luzgin on October 26. According to him, the maximum interest rates on non-concessional loans reached 25.8% in February 2010, and in September — 18.5%.

«A decline of this index by a third in such a short period is a good pace, although this process will continue,» the representative of the National Bank said. According to him, such a rapid reduction of interest rates on loans has become possible by the active measures of the National Bank and the Government of Belarus.

Nicholas Luzgin also reported that according to October 1, 2010 the amount of individuals’ credit arrears had reached Br20.1 trillion in Belarusian banks. This makes 25.3% of the total loan portfolio of banks. Thus, Br2.1 thousand of credit debt is accounted per capita in Belarus. The concessional loans arrears have increased in 13 times to Br11.5 trillion since 2005 up to October 1, 2010, BelTA informs.

According to a representative of the National Bank, the main areas of lending in Belarus are still real estate financing, and consumer spending. «Last year there were some difficulties in the financial sector (devaluation, the prohibition on lending in foreign currency), so there was a slight decrease in consumer lending needs, while the growth in real estate lending was maintained,» Nikolai Luzgin said.

So, according to the National Bank, the proportion of loans for consumer needs was 45.7% in January 2009, whereas now it stands at 29.2% level. At the same time the share of loans in real estate has increased from 65.2% to 70.8% since 2010. According to Nikolai Luzgin, the bulk of these loans is subsidized.

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