Belarusians Left Without Loans for Another Three Months

The National Bank extended the moratorium.

The National Bank of Belarus has extended the moratorium on the provision of constantly available operations to support and withdraw liquidity for banks until January 19, 2021. This was reported by the press service of the regulator, myfin.by writes.

"This decision was made in order to ensure control over the money supply in the context of continued heightened uncertainty in the financial markets. If necessary, banks' liquidity will be supported by holding credit auctions at the declared interest rate, the level of which will be brought to the attention of banks when the auction is announced," the National Bank said.

What does it mean?

The suspension of overnight loans by the National Bank led to an acute shortage of liquidity in the market, and, as a result, the suspension of lending to individuals, as well as restriction of lending to companies. This was done in order to knock down the currency rush in the Belarusian market that erupted in August. According to experts, the lack of liquidity and the lack of loans can lead to dire consequences for the economy, including delays in the payment of salaries and problems with deposits.