A number of Belarusian banks stopped granting loans (List)

• 19.11.2008, 12:00

Unstable situation on the world financial market influences the Belarusian banks. Some banks have already suspending granting auto and real property loans.

BPS-Bank and MTBank don’t give auto loans at least till the next year. BTA-Bank and Belgazprombank said they had suspended giving credits for an indefinite term, Interfax reports.

Some banks didn’t stopped granting loans but imposed additional requirements, for example Belvneshekonombank gives credits for purchasing only new autos; according to a consultant of Paritetbank, it gives auto loans “theoretically”.

Real estate and construction loans have been suspended by BPS-Bank, Belvneshekonombank, and Belgazprombank.

Requirements for this loan have been changed by Paritetbank (only guarantee credits are possible, family joint year' income is not considered) and by VTB (Belarus), which has increased a rate of own funds when purchasing property from 10-20 per cent to 30-50 per cent.

Besides suspending of credit programmes, the crisis also affected loan interest rates. If auto loan interest rate was 11-13 per cent (for a loan in foreign currency) and 16-18 per cent (for a loan in national currency) some months ago, now average interest rate on loans in foreign and national currency is 18-20 per cent per annum, and some banks have set interest rate at 23-24 per cent per annum.

On November 19, Belarusbank raised interest rates on loans. Belarusbank grants consumer needs loans for three years at 19 per cent interest rate per annum in Belarusian rubles and at 16 per cent in foreign currency.

Rates on loans for other purposes, for instance, construction loans, have increased. Those, who didn’t take loans on beneficial terms, will pay 20 per cent interest rate per annum “for the time of using a credit”.

Loans (especially real estate loans) were unavailable for many Belarusians before, but now one shouldn’t take big credits at all.