National Bank claims to limit granting of credits for salaries

The National Bank of the Republic of Belarus recommended commercial banks to limit granting of credits to state-owned enterprises to pay out salaries.

This recommendation is mentioned in the National Bank's letter to Belarusians ones, "Interfax" reports.

The letter says that salary credits can be allowed to state-owned enterprises "only when productivity growth outruns nominal imputed average monthly per employee wage”.

In addition, it recommended banks not to provide credits to companies to finance current operations when a borrower increases overdue receivables and finished product stocks during the past six months.

Also the letter of the National Bank notes that performance evaluation of financed projects should be held by a bank both at the time of granting a credit and in the course of financed project realization.

However, in case of financial and economic discrepancy from the business plans, banks are recommended to suspend financing of such projects.