Some Belarusian banks (BPS-Bank and Belagroprombank) have recently begun to restrict the issuance of loans in local currency. As explained in banking circles, the National Bank of the country verbally recommended the Belarusian banks to limit the issuance of consumer loans to individuals, as well as loans for the purchase of vehicles, in order to reduce pressure on the currency market.
Thus, BPS-Bank informed about its decision not to consider applications for granting loans for consumption needs, buying cars and real estate, as well as for better housing conditions for those in need until April 3, RIA «Novosti.»
Another major bank of the country, Belagroprombank, has also temporarily suspended the acceptance of applications for loans to purchase real estate, as well as re-registration of foreign currency loans in rubles. Auto loans and consumer loans are granted by the bank under the same terms.
From April 1, 2011, Belarusbank changes the conditions for individuals to transfer foreign currency loans into rubles. Foreign currency loans having transferred in the Belarusian rubles, the loan agreements set the conditions for the specific type of loan in the Belarusian rubles at the date of supplementary agreement to the loan contract with the following features. If the interest payments on loans in foreign currency has been carried out in regular payments, the order of interest payment on credit in the Belarusian ruble (in case of loan currency change) is set by making contributions with the establishment of 17% interest rate under the loan agreement. The credit agreement requires 14.5% interest rate for the actual time of using a credit.
National Bank’s concern is caused by the fact that rates on these types of loans are quite high, which may result in the increased debt of individuals to banks. According to statistics of the National Bank, this debt has increased at 5.6% and amounted to Br22.3 trillion in national currency ($7.3 billion) on March 1, 2011.
In addition, it became known that Belagroprombank has also set a time limit on ruble cards’ transactions since March 28. Operations on the issue of cash can now be carried out only in rubles in the territory of Belarus, while daily limit for cash withdrawal at ATMs or cash points is set outside the country ($500 — $1000 in equivalent depending on the type of card). It’s not reported when these restrictions will be removed.
As Telegraf previously reported, the largest banks of Belarus Belinvestbank, BPS-Bank and Priorbank, have formerly imposed some restrictions on transactions in foreign currency. So, it has been forbidden to transfer money from plastic cards in the Belarusian rubles into the foreign currency cards, to transfer currency from one card to another, to deposit Belarusian cash in the foreign exchange cards and to withdraw currency from the cards in the Belarusian rubles in the territory of Belarus.
