Updated at 11:30,08-12-2016

Banking System May Collapse at Any Moment

The former chief banker of Belarus criticised the credit policy conducted by the National Bank.

Stanislau Bahdankevich is convinced that the Belarusian banking system may collapse at any moment.

The former head of the National Bank made this pessimistic forecast during the round table discussion on ways of tackling the economic crisis held in Minsk on March 11, Radio Racyja reports.

Bahdankevich harshly criticized the credit policy carried out by the National Bank.

"The debt volume increased by 42%. Is this a credit policy? What the loans are spent on? They are spent on supporting the ineffective enterprises. This is a social loan. It is needed for a worker to go to work, do nothing and receive 500,000 rubles or even 1,000,000. Do we need such credits? Is this policy by the National Bank right?" Stanislau Bahdankevich wondered.

As the expert underlined, a sort of a financial pyramid is being built in Belarus, when money are lent by an enterprise to pay employees, not to fulfil invest projects.

According to Stanislau Bahdankevich, there is a danger that the banking system may ruin because it will never have the loans back.