Troubled debts of state-owned enterprises to banks account for 14% of Belarus’ GDP - National Bank

<p> MINSK, Jan 29 - PrimePress. The troubled debts of public-sector enterprises to banks account for 14% of Belarus’ gross domestic product (GDP). Deputy Chairman of the National Bank of Belarus (NBB) Dmitri Kalechits made a statement to this effect at an enlarged meeting of the National Bank on January 28. </p> <p>   </p> <p> As previously reported, in 2020 Belarus’ GDP totalled Br 147.006 billion ($56.1 billion at the exchange rate of the National Bank of Belarus). </p> <p>   </p> <p> “A number of state-owned enterprises, the largest borrowers, have limited capacity to service the debt on their own. The National Bank estimates the debt burden of such enterprises at around 14% of GDP. A threat to financial stability is posed by an insufficiently efficient allocation of financial resources in the economy. Credit resources are often channelled in favour of non-competitive companies to the detriment of efficient businesses, which reduces the economic potential of the state,” reads the report. </p> <p>   </p> <p> According to Kalechits, the growth rate of consumer lending in Belarus slowed down to 1.3% in 2020 against 25% in 2019. At the same time, the growth of real estate lending was 17.5%. “At the same time, risks of lending to households remain due to lower growth rates of real disposable incomes of the population with some growth of bad debts on bank loans,” the report said. </p> <p>   </p> <p> According to Kalechits, in 2021 the National Bank will continue to create conditions for maintaining credit growth at an equilibrium level that provides an optimal balance between economic activity and the value of systemic risks. Particular attention will be paid to strengthening financial stability on the foreign exchange and deposit markets. End </p>

2021-01-30

Primepress