National Bank of Belarus imposed a permanent ban on the issuance of foreign currency loans to individuals by its decree № 557 of December 17. This document amended the previously adopted Resolution № 105 of July 14, 2009 on a temporary ban on the issuance of foreign currency loans to the population — until January 1, 2011.
Press secretary of the main bank in the country, Anatoli Drozdov, explained that this had been done for de-dollarization of the economy, as well as for the reduction of foreign exchange risks for the citizens and the banking system of Belarus, BelTA informs.
Decision to suspend the issuance of foreign currency loans to individuals was adopted by National Bank in 2009 due to the increased risks of non-repayment of foreign currency loans against deteriorating crisis and citizens’ lower income.
Foreign currency loans accounted for 25% of the whole structure of the loan portfolio of the banking system of Belarus as of July 1, 2009. The main bank in the country reported in July 2009 that some commercial banks had reached 70% of such loan arrears.
«This will help to protect the stability of the Belarusian ruble, including its purchasing power and exchange rate against foreign currencies, as well as to ensure the increased confidence in the national currency,» the National Bank explained the need to introduce a temporary ban.
