EDB: Belarus maintains high lending rates

Belarus has maintained high lending rates, Eurasian Development Bank informs in its weekly macro review

According to the report, the banks' loan portfolio grew by 1.4 percent month-on-month in June after an increase of 0.7 percent in May and 2 percent in April. Credit indebtedness increased for legal entities (1.2 percent month-on-month in June after 0.2 percent in May) and individuals (1.8 percent month-on-month in June after 2 percent in May).

According to the EDB, the growth of lending is due to an increase in its availability because of lower interest rates and a soft monetary policy. High rates of lending with an increase in household incomes increase inflationary risks.

The Eurasian Development Bank is an international financial organisation established by Russia and Kazakhstan in January 2006 to promote the development of the market economy of the participating states, their sustainable economic growth and the expansion of mutual trade and economic ties. The bank's member states also include Armenia, Belarus, Kyrgyzstan and Tajikistan. The EDB authorised capital makes $7bn.