ABB head Felix Charnyauski: Belarusian banks face default

• 6.01.2009, 8:01

Default banks that attract credits from abroad, believes chairman of the Belarusian banks association.

“I understand a possible default as a situation in the banks related to consumer loans, when banks received credit resources from abroad. These resources started to go up. Banks issue credits from turnover. If the situation with salaries would be bad, there would be difficulties for banks for such consumer loans issuing,” the chairman of the Association of Belarusian Banks Felix Charnyauski said.

Speaking about the threats of the crisis for the bank system of Belarus, he noted that it could decrease the base of banks’ resources and credit portfolio’s deterioration.

“The threat of losing currency reserves of the National bank, decrease of capitalization of banks in the process of the Belarusian is also possible, deterioration of conditions for short-term credits’ refinancing, threat of mistrust to the Belarusian ruble from the population and threat of clients’ mistrust to banks,” F. Charnyauski said.