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Bank Credit Rates May Rise In Belarus By End Of Year

Bank Credit Rates May Rise In Belarus By End Of Year

On how and when the refinancing rate may change.

In Belarus, the refinancing rate, to which the rates on many bank loans are tied, may increase by the end of this year, predicts the Eurasian Development Bank. Experts also expect that the National Bank may raise the interest ceiling on loans, which banks stick to. Meanwhile, officials predict an increase in the refinancing rate in 2022, zerkalo.io writes.

How and when the refinancing rate may change

The EDB predicts an increase in the refinancing rate in Belarus by the end of this year. Currently, the rate is 9.25%. It was last raised on July 21. We remind that many bank loans are tied to this index, including real estate loans. With the increase of this value, the interest rates on loans also increase.

The draft national budget for 2022, according to our information, provides for a refinancing rate of 9.9%.

The interest ceiling on loans may rise.

The EDB also predicts that the National Bank may raise the calculated values of the standard risk by the end of this year. In simple terms, it's the interest ceiling on loans, which the banks stick to. Now, this figure for loans to individuals is 19.02%, and 14.87% for corporate clients. The last time the calculated values of the standard risk was raised in August.

The interest rates on loans for real estate and automobiles are tied to the calculated values of the standard risk in some banks on general terms. That is, if this indicator increases, banks are to change the interest rates on individual loans.