Belarusbank stopped granting home loans

• 15.12.2008, 15:53

JSE Belarusbank, the biggest Belarusian bank, stopped granting home purchase loans on December 8.

At present, Belarusbank gives construction credits for those who need housing improvement in Belarusian rubles for 15 years with annual interest rate 15 per cent. Those who don’t need housing improvement can get loans for 15 years with annual interest rate 20 per cent, Interfax agency reminds.

The bank said a decision of removal of loans for purchasing real estate at resale market from the list of banking services was taken by the management board after Belarus bank had analyzed the home loans market and its volumes.

Belarusbank grants consumer loans only in Belarusian rubles for 1 year.

Spokesman of Belarusbank Syarhei Verashchak confirmed to the agency the bank stopped giving home purchase loans. He refused to give other comments.

Other biggest Belarusian banks imposed restrictions on loan granting to individuals.

So, Priorbank (RZB-group), the third largest Belarusian bank, limited housing loans (construction and purchase) to $35,000 with annual interest rate 17 per cent. Priorbank curtailed a sum of consumer loans for one borrower to $2,500. The bank press service told to the agency it was “the bank’s policy at this stage”.

Belagroprombank (the second largest bank) imposed restrictions on giving credits to individuals, too. It offers only credit-cards loans and doesn’t deliver cash. The agency learnt from the press center of the bank that “consumer loans are granted in credit cards in foreign currency with annual interest rate 17 per cent and in Belarusian rubles - with annual interest rate 19 per cent.”