Working for Belarusian Economy -National Bank's Directive to All Banks in Belarus
On April 16, the National Bank of Belarus aligned all banks in the country with the goal of operating in the interests of the Belarusian economy. During a recent conference, the emphasis was placed on enhancing investment portfolios for manufacturing projects and promoting consumer lending as a means to encourage the purchase of domestic goods. The long-term deposits are designated to be the primary basis for lending. These objectives were clearly laid out during the discussions.
To develop and launch new production lines, workshops, or products, financial resources are essential. When companies find their working capital insufficient, they turn to banks for support. The National Bank has set a target for all commercial banks to increase the investment portfolio of the Belarusian economy by no less than 16 % in 2025 compared to 2024. This mandate applies to both large manufacturers and small businesses.
Numerous successful projects are already underway, particularly in the regions, which are receiving special attention as business initiatives gain traction. Banks are supporting these efforts financially, contributing to the creation of new jobs and products with high added value. It is crucial that more interesting proposals continue to emerge.
Alexander Yegorov, the First Deputy Chairman of the National Bank of Belarus, stated:
"There are projects identified by the government within a targeted plan. Currently, a series of meetings are taking place with commercial banks, and each will identify 3-4 major investment projects that will suffice for this year and next, ensuring that the objectives set by the head of state are met."
In total, last year, the Belarusian banks, excluding foreign institutions, invested approximately 5 billion rubles into production. Alexander Rusetskaya, the Executive Director of a Belarusian commercial bank, noted that these projects encompass all sectors of the nation’s economy.
Inna Starovoytova, Deputy Chairperson of the Board of the Development Bank of Belarus, remarked:
"At the beginning of the year, the government tasked our bank with ensuring a growth rate in investment lending for commercial projects of no less than 20%. This is an ambitious goal, but it is achievable."
During the conference at the National Bank, there was discussion about increasing the amounts allocated for efficient and profitable projects, aiming for nearly 6 billion rubles for the year. The regulator views the lending conditions as favorable, having removed excessive requirements.
At the same time, the regulator recommends restructuring the ratios of investment and consumer lending, the latter of which is on a continuous rise. However, this does not mean that funds for imported goods will be eliminated. It is important for loans for domestic products to be more appealing. Demand is steady, with 500 million rubles allocated for domestic goods in 2024, and this year it is anticipated that this figure may rise to 600 million.
Alexander Yegorov noted:
"The primary objectives we will establish are: growth rates should remain within the parameters of 11-14 %, the volume of investment loans issued should be 16 % higher, and the growth rate of consumer loans, excluding those for Belarusian-made products, should not exceed 12 %. Long-term deposits must serve as the foundational base for these endeavors; therefore, the growth rate of deposits should exceed 17 %."
To encourage clients to deposit funds and open savings accounts, banks must offer attractive conditions, as customers are increasingly aware of yield potentials - this is already in progress. The aim is to increase the number of non-withdrawable deposits with terms of one year or more.
Currently, the consumer boom is not limited to goods alone but also extends to real estate. The regulator is directing banks to support housing purchases through loans, particularly for new constructions, which contribute positively to quality economic growth.