Updated at 18:18,16-07-2018

Nadzezhda Yermakova: No cheap home loans


Interest rates on home loans will not be lower than 30%.

The statement was made by Nadzezhda Yermakova, the chief of the National Bank of Belarus, during a call-in conference with readers of Sovetskaya Belorussia newspaper.

“You can take a loan, but the interest rate is very high, more than 30% per year,” she said answering the question from a Slonim resident “How can a young family take a home loan?”

Nadzezhda Yermakova said it was still impossible to reduce interest rates.

“Unfortunately, we don't have opportunities yet to reduce interest rates. Banks' resources are expensive. We have money in the banking system, and banks could give it, but paying capacity of our people doesn't allow it. Certain banks invent new products, cooperate with those selling houses. For example, developers share the interest rate with borrowers. A system of home saving allowing to amass money to buy a home has been working in Belarusbank for many years. You collect 25% of the home cost for 3 years. For the rest 75%, the bank issues you a loan with an interest rate much lower than the market one,” she said.

According to Yermakova, the National Bank, the Ministry of Economy and the Ministry of Finance are working on an state system of home savings.

“The state will pay bonuses to people who save money. We should gradually move from easy-term home loans to market ones. People will try to earn more. What we have now is that a person has a low salary, doesn't want to work at two jobs, but wants a cheap loan to construct a home in Minsk.

Documents on home savings will be ready by the end of the year. It is a new thing that we don't have in our legislation yet,” the National Bank chief said.