Belarus' refinancing rate projected at 9-9.5% per annum in 2024

The refinancing rate in Belarus is projected at 9-9.5% per annum in 2024. Such projections were set out in Belarus' Monetary Policy Guidelines for 2024 that were approved by Resolution No. 363 of the Board of the National Bank as of 19 October 2023 to implement the provisions of the updated Banking Code, BelTA learned from the Information and Public Relations Department of the National Bank.

“The interest rate policy seeks to increase the attractiveness of savings in the national currency that are used as resources to finance the economy. It also seeks to make loans more affordable for businesses and households. Interest rates in the economy will be maintained at a positive level in real terms. The refinancing rate of the National Bank is projected at the level of 9-9.5% per annum on average in 2024,” the National Bank said.

The banking sector will continue to contribute to the sustainable economic development of the country by meeting effective demand for loans to finance economic and investment activity by creating a balanced resource base for this.

In order to encourage more individuals to make deposits, banks will offer the most attractive terms for irrevocable bank deposits, primarily for a period of one year or more. Such deposits are seen as a key element of long-term funding. The interest rate on such deposits is to be 10-11% per annum on average in 2024, their volume is to increase by 20-24%. By the end of the year they will make up at least 80% in the total volume of fixed-term and conditional deposits of individuals in national currency.

The volume of lending will be such as to meet the needs of the economy while preventing the growth of systemic risks. Banks' claims on the economy will increase by at least 10%. Lending will be offered primarily in national currency. According to estimates, banks' claims on the economy in national currency will be at least 70% of total claims of banks on the economy by the end of 2024.

The total volume of lending by banks to legal entities and individuals in national and foreign currency in 2024 will amount to Br145-150 billion, including Br10.5-11 billion of consumer lending.

The interest rate on new bank loans issued to legal entities and individuals in national currency on market conditions is projected at the average of 8.5-9.5% per annum in 2024. The interest rate on all new loans to legal entities in national currency is to be at 8-9% per annum.