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September 1 – September 7, 2014

Lower loan interest rates led to record number of outstanding loans

The situation has not changed
Lower loan interest rates led to record number of outstanding loans

The National Bank reported that in July 2014 the economy’s debt to the banking sector (loans in national currency) increased by BYR 2.6 bln (circa EUR 189 million) – the largest debt since August 2013.

The debt has also accumulated due to the National Banks’ soft monetary policy. The National Bank is expected to further reduce rates in the economy, interest in currency loans will decline and banks will continue to lower interest rates on rouble deposits in the economy. The main risk is that the volume of outstanding loans will continue to increase rapidly, thus leading to liquidity problems in the banking system.

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