National Bank head: No mortgages in Belarus in near future
National Bank's chairman Pavel Kalaur says the level of inflation has to be at no more than 9% in order to cut loan rates.
Projected figures for 2015 refinancing rate are 15-16%. At a press conference on May 5, chairman of the National Bank, Pavel Kalaur, announced that the bank plans a very balanced approach to solving this problem.
"The priority of the National Bank is reduction of inflation. Therefore, in the forecasts it ranged from 23 to 25%. In view of our predictions, it should go down. Time frame and pace will depend on the macroeconomic situation in the country," said the chief banker of Belarus. He added that the National Bank does not support the high interest rates on loans.
Interest on loans (such as housing loans) depends on the refinancing rate. It can also be linked to deposit rates.
In this regard, Kalaur was asked why interest rates on loans for housing in Belarus are much higher than loans in Poland or Russia - 35% versus 14%.
"To have our lending rates on the same level as in Poland, we have to have a similar macroeconomic situation. To reach the lower level of loan rates, we need to reach the level of inflation no more than 9%," said the head of the National Bank. According to him, it is projected that by 2020 in Belarus the figure should not exceed 5%, in Russia - no more than 4%.
Kalaur noted that there have been a lot of various programs in the housing sector - concessional loans, housing for the poor. But in the near future, Belarus will not have mortgages similar to those in Poland.
