The House of Representatives together with the Ministry of Economy and the main leaders of the Belarusian banks is planning to work out a set of measures for the development of mortgage lending. One of such measures is the new norm of the Housing Code, under which banks will have the right to sue to evict debtors for non-payment of loans.
This was stated by chairman of the Standing Committee of the House of Representatives on housing policy, construction, trade and privatization Halina Polianski.
MPs and bankers will decide on the steps to be taken at the enlarged meeting of the committee on January 27. The event will be attended by representatives of the National Bank, Priorbank, Belarusbank, Belinvestbank and Belagroprombank, as well as the Ministry of Economy, BelTA informs.
The system of mortgage lending, which is a loan for housing against mortgage, has not been developed in Belarus, although the law «On mortgage» was adopted in 2008.
«Unfortunately, the new law is not working at full strength, as the bank today cannot evict a debtor from the apartment. This mechanism is not provided by the Belarusian legislation,» explained Halina Polianski.
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According to the deputy, this issue holds back the spread of the mortgage more than any other reason. The new rules are already being introduced in legislation to resolve this issue. Thus, the draft of the Housing Code, passed by the House of Representatives in the first reading, stipulates that banks will have the right to sue to evict debtors for non-payment of loans. «Thus, the risks of banks will be significantly reduced,» she said.
MPs also plan to learn about other barriers to the development of mortgage, as well as the ways to remove them. They expect to discuss this issue at the appointed meeting of the bankers. Each bank will be able to make suggestions for the deputies to gather them into a single set of measures and work out solutions at the legislative level.
Halina Polianskaia believes that the Belarusian economy needs mortgage, which should be developed, as other loans are not enough. «If banks previously provided loans only to citizens with a third-party-guarantee, it’s no longer enough today. In addition, the guarantors are not always fully aware of legal information, they don’t read the contract properly and don’t realize that they are jointly and severally liable for default on the loan,» she said.
Mortgage development and new forms of lending will be particularly relevant if the guarantee system for housing loans fails, which means that the number of loan recipients will exceed the number of guarantors.
