Belarus sees sharp decline in interbank credit market rates in July
<p> MINSK, 24 Jul - PrimePress. The rates for overnight interbank loans fell sharply in July 2020 after the National Bank of Belarus (NBB) decided not to withdraw liquidity from the banking system in the period from June 30 to September 15, 2020. </p> <p> </p> <p> According to the NBB website, the rate for interbank loans was 3.64% on July 22, 2020 against 7.87% on the last day of June. </p> <p> </p> <p> The average rate for overnight loans in the interbank market usually most accurately reflects the cost of borrowing in the economy and is close to the refinancing rate. The refinancing rate is currently 7.75%. </p> <p> </p> <p> The interbank credit rate in July was also much lower than the inflation rate. In June, the inflation rate in Belarus was 5.2% per annum. </p> <p> </p> <p> The National Bank of Belarus explained the decision to suspend the withdrawal of liquidity from banks by the need to activate the interbank credit market. </p> <p> </p> <p> It is obvious that such a decision encourages banks to lower interest rates for loans, which is exactly what Belarusian President Alexander Lukashenko insists upon. </p> <p> </p> <p> On June 19, at a meeting on measures to support the real sector, Lukashenko said that all instruments to replenish the resource base of banks should be used: deposit auctions of the Ministry of Finance, the NBB should loosen the reserve requirements to maintain liquidity, as well as the profit of the banking system. Lukashenko demanded that the replenished resource base should be used for crediting enterprises. End </p>
2020-07-25
Primepress
MINSK, 24 Jul - PrimePress. The rates for overnight interbank loans fell sharply in July 2020 after the National Bank of Belarus (NBB) decided not to withdraw liquidity from the banking system in the period from June 30 to September 15, 2020.
According to the NBB website, the rate for interbank loans was 3.64% on July 22, 2020 against 7.87% on the last day of June.
The average rate for overnight loans in the interbank market usually most accurately reflects the cost of borrowing in the economy and is close to the refinancing rate. The refinancing rate is currently 7.75%.
The interbank credit rate in July was also much lower than the inflation rate. In June, the inflation rate in Belarus was 5.2% per annum.
The National Bank of Belarus explained the decision to suspend the withdrawal of liquidity from banks by the need to activate the interbank credit market.
It is obvious that such a decision encourages banks to lower interest rates for loans, which is exactly what Belarusian President Alexander Lukashenko insists upon.
On June 19, at a meeting on measures to support the real sector, Lukashenko said that all instruments to replenish the resource base of banks should be used: deposit auctions of the Ministry of Finance, the NBB should loosen the reserve requirements to maintain liquidity, as well as the profit of the banking system. Lukashenko demanded that the replenished resource base should be used for crediting enterprises. End