MINSK, 12 November (BelTA) – On 12 November Belarus introduced irrevocable bank deposits, which means the depositor cannot require banks to return money on request regardless of the term of a deposit. The decision is laid down in Belarus President Ordinance No.7 concerning the attraction of cash assets to bank deposits which the head of state signed on 11 November 2015, the press service of the National Bank of the Republic of Belarus (NBRB) informs.
“On 12 November 2015 Belarus changed the classification of bank deposits. The document [Ordinance No.7] takes effect on the day of its official publication and covers only newly-signed deposit agreements,” said the central bank.
According to the bank, in line with the current classification bank deposits in Belarus are divided into several types:
time deposits (which cannot be withdrawn before a set date; the interest rate depends on the sum and term of the deposit);
conditional deposits (which can be withdrawn in the event of a certain condition fixed in the agreement),
demand deposit (which can be withdrawn any time without prior notice; the interest rate is usually lower in comparison with other types of deposits).
“In line with Ordinance No.7 starting from 12 November time and conditional deposit accounts will be divided into irrevocable and revocable deposits. The terms for early withdrawal of funds will be the main distinctive feature of these two types of deposits,” the National Bank said.
The revocable deposit agreement will envisage the possibility for early withdrawal on request of the depositor. The period and terms for the return of the deposit will be included into the agreement between the bank and the depositor.
The irrevocable deposit agreement does not provide for an early withdrawal of the funds on the initiative of the depositor. It will be possible to withdraw the deposit ahead of the termination of the contract period only with the consent of the bank.
“Bank deposit agreements concluded before 12 November 2015 will be executed on the previous terms until their payback period. If the agreement is to be extended for a new period, its provisions should be brought into compliance with Ordinance No.7,” said the NBRB press service.
“The state still guarantees both full security of individuals' savings in the Belarusian rubles and foreign currency placed in bank accounts and/or bank deposits and also the repayment of the whole sum in the currency of the bank account or deposit with the payment of interests,” the central bank added.
