Belarusian Prime Minister comments on the possibility of lowering interest rates on loans


Roman Golovchenko

SOLIGORSK DISTRICT, Aug. 10 (BelTA) — Belarusian Prime Minister Roman Golovchenko commented on the possibility of lowering interest rates on loans during his media interview on Aug. 10, BelTA learned.

At the meeting of the Council of Ministers, hosted by the head of state, on August 9, Roman Golovchenko said that interest rates on loans should be significantly reduced to stimulate consumption. Speaking to the media on August 10, the Prime Minister spoke in detail about the prospects for lower interest rates on loans. “Interest rates on loans are already falling, but maybe not as fast as we would like. According to the latest data, the average rates for new consumer loans were around 14%. Clearly there are higher rates, but a lot depends on the reliability of the borrower,” he said.

The Prime Minister recalled that in March-April there was another wave of panic: people rushed to withdraw deposits and buy foreign currency. “All these processes have affected the banking system. When there was an outflow of deposits, banks had to retain depositors by raising interest rates on deposits. It is normal that the interest rates on loans cannot be lower than the rates on deposits. Now the situation has calmed down. Depositors’ confidence in the banking system has been restored. We can see a steady inflow of Belarusian ruble deposits. There is currently excess liquidity in the banking system. There are more free resources. We also have a record influx of foreign investment, which gives us a greater opportunity to use free resources,” said Roman Golovchenko.

According to the Prime Minister, it is time to move to the second phase of macroeconomic growth, which means providing the economy with sufficient resources on the one hand and reasonably stimulating domestic demand for a maximum recovery in retail and services. , on the other hand. hand. “We think it’s time to start lowering interest rates on loans further. This will help boost domestic consumption and economic growth. We are discussing this issue with the National Bank. There should be no sudden movements. Everything must be calculated and well thought out,” said the head of government.

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