31 July 2015, Friday, 8:06

National Bank deputy chief: “Those who don't understand words will get it in the neck”

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Syarhei Dubkou threatens to apply sanctions to Belarusian banks.

The National Bank of Belarus promises to impose sanctions if banks fail to fulfil the regulations relating to credit conditions announcements. Under the new regulations that have come into force today, the announced interest rate on a loan must include all additional payments and fees, AFN news agency reports.

The National Bank however doesn't consider the possibility of regulating the credit market by setting the maximum interest rate allowed.

“We have a rather large number of tools from preventive talks to revoking licenses,” Syarhei Dubkou, the deputy chief of the National Bank, said today at a press conference.

According to him, banks may have different reasons to deceive “both themselves and the regulator” in short-term prospects, but this approach to banking will lead to no good in Belarus.

“Those who don't understands words will get it in the neck. I say it straight,” the National Bank deputy chief said.

Dubkou said the National Bank does not consider the possibility of limiting interest rates on loans by setting the maximum rate allowed.

“The situation is neither critical nor problematic to use this measure,” the Belarusian National Bank deputy chief noted.

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