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28 March 2024, 14:15

Central bank: The Belarusian economy is not overheated

MINSK, 28 March (BelTA) – The Belarusian economy is not overheated with excessive lending. Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Pavel Kallaur made the statement after delivering a report to Belarus President Aleksandr Lukashenko about the performance of the banking system and the measures being taken to facilitate foreign trade operations, BelTA has learned.

Pavel Kallaur stated that in the last three years Belarusian enterprises adapted to external shocks. The rather good economic growth confirms it. In January-February 2024 Belarus’ GDP grew by 4%. “It is necessary to know how to promptly and professionally respond to any challenges,” Pavel Kallaur remarked.

Asked what support the central bank provides to enterprises, Pavel Kallaur said that it is more correct to talk about the support the country’s banking system as a whole provides: “Because together with commercial banks we enable the processes, which are crucial to the normal operation of our economy. First of all, we enable the savings process in order to accumulate the necessary resources for further lending to the economy.” Continuing the line of thought, he mentioned that bank deposits in Belarusian rubles continue growing and deposits, which term exceeds one year, are prevalent. “It is very important because the economy needs long-term resources. Banks use them to lend money to investment projects,” the NBRB head explained.

In his words, banks ensure the proper pace of lending to the economy. Both individuals and enterprises very actively used loans last year.

When asked to clarify whether there are any fears regarding the debt burden on the Belarusian economy, Pavel Kallaur said: “We constantly carry out research as part of the efforts to ensure financial stability. The matter of overheating the economy or the debt burden is one of the key matters we pay attention to. Our credit gap is optimal. In other words, we see no economic overheating due to intensive and excessive lending.”

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