OREANDA-NEWS. January 11, 2009. Belarus’ largest bank Belarusbank is not going to raise the interest rate for preferential home loans, Belarusbank Chairman of the Board Nadezhda Yermakova said. She took part in a Christmas charity action in a Bobruisk boarding school on January 10.

In her words, interest rates for long-term preferential loans used to build homes will remain the same and will not exceed 3-5%. Losses of the bank will be compensated by the government. This year the volume of preferential home loans will be essentially increased. While in 2008 Belarusbank issued Br1.7 trillion in preferential loans, in 2009 the figure is supposed to be close to Br2.5 trillion.

Nadezhda Yermakova attributed the raise to this year’s increase in home construction and respectively an increase in the number of people, who will be given an opportunity to have preferential homes built.

As far as consumer loans are concerned, in the near future the interest rate for new loans will reach 20-22%. Nadezhda Yermakova said, the increase is a temporary measure brought about by the global financial crisis. “But the crisis will not last for ever. I am sure in the near future the economy will be stabilised. More money will be in circulation and more opportunities for issuing loans to individuals will be available while the loans themselves will be cheaper,” stated Nadezhda Yermakova.