Reduction of Interest Rates on Loans to Continue in Belarus, National Bank

20.07.2010 09:39
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Chairman of the National Bank of Belarus, Pyotr Prokopovich, reported to the President Alexander Lukashenko on the implementation of Main directions of money-and-credit policy in the first half of 2010. The head of the NBB said that during this period there done a lot of work to reduce interest rates on loans.

As Pyotr Prokopovich told, in general, over six months of this year, interest rates for legal persons were reduced by more than 5 percentage points. So, if in January the average interest rate on issued loans was more than 21%, then at the end of June it was 16.5% in general, and for legal persons — an average of 15.4%. The refinancing rate for this period has been decreased from 14% to 11.5%, the head of the NBB informed.

The Chairman of the National Bank stressed that the work to reduce interest rates would continue in the third and fourth quarters, the press service of the president informs.

No sharp fluctuations of ruble exchange rate to be till the end of the year, Prokopovich

Pyotr Prokopovich assured Alexander Lukashenko that ruble exchange rate would remain stable and there were not expected sharp fluctuations in its prescribed corridor + / -2-3% by the end of the year. According to the chief banker of the country, there are all necessary conditions for that, including appropriate gold and currency reserves: on July 1, they exceed six billion dollars in national definition.

The National Bank will ensure further lending of economy, Prokopovich

As the head of the NBB underlined in his report, in the first six months of the year, great attention was paid to the lending of economy real sector.

«On July 1, 2010, comparing with July 1 of last year, enterprises’ credit indebtedness to banks increased by 1.32 times, all demand in lending was provided in fact. Therefore, special attention was paid to the lending of state programs, which was increased in 1.4 times», Pyotr Prokopovich said.

However, the most rapid paces are observed in preferential lending for housing, the chief banker of Belarus stressed. Compared to the same period of last year, in the first half of this year, it increased in more than 1.54 times. As the chairman of the National Bank assured, to the date in banking system there were all necessary resources in order to ensure further lending of economy. Pyotr Prokopovich also mentioned the importance of the fact that the lending of economy was provided by all banks, not just by state-owned.

Banking system is fully resourced, Prokopovich

The head of the NBB informed the president that in the first half of the year, payment system had worked safely and without any failures. «All payments are made on time, and banking system is provided with necessary resources in full. If at the beginning of the year, the liquidity of banks was not adequate, then since March this situation has changed. The National Bank is forced to withdraw extra money from banks through the purchase, sale of securities and by other means», the Chairman of the National Bank said.

Pyotr Prokopovich expressed hope that in near future there would increase the activity of enterprises, which would work out more effective projects, and the lending in the second half of the year would be carried out more rapidly than in the first.

In his turn, the head of state demanded that till the end of the year, the work of the banking system to be ensured clear, especially in the areas, concerning the lending of economy, reduction of interest rates. As Pyotr Prokopovich underlined, the National Bank would accelerate this work and would operate more efficiently till the end of the year.