Tightened Debt Calculation Regulations Implemented by Belarus' National Bank
The National Bank of Belarus has announced that new rules for debt load assessment will come into effect on November 22, as part of a broader initiative to align Belarusian legislation with the "Consumer Credit and Consumer Microloan" law.
These changes are being implemented by the National Bank of Belarus, under the leadership of Mikhail Svetlov, in response to the "Consumer Credit and Consumer Microloan" law adopted in February this year. The new rules are expected to have a significant impact on the credit practices of banks, microfinance, and leasing organizations in Belarus.
One of the key changes is the stricter consideration of data from the Credit Register when calculating the debt load indicator. This move is intended to reinforce the requirement for financial institutions to have a comprehensive view of a borrower's existing debts before granting new credit.
Another significant change is the prohibition of financial institutions from considering income information obtained verbally from relatives, employers, or third parties, including over the phone. This measure aims to increase the responsibility of financial institutions and strengthen the protection of consumer rights in Belarus.
The new rules are being implemented as part of ongoing efforts to regulate the credit market in Belarus. They are expected to help prevent excessive debt burden on citizens in Belarus by imposing stricter debt-to-income ratio caps or requiring more thorough verification of existing debts before granting new credit.
The exact regulatory amendments effective November 22 in Belarus can be found in the official Belarusian financial regulatory authority publications or legal texts related to consumer lending updated around that date. The absence of exact information in publicly indexed search results means that the official sources or Belarus government portals would have the authoritative text and explanatory notes.
These new rules are part of the "Consumer Credit and Consumer Microloan" law adopted in Belarus in February this year, which aims to enhance prudent lending practices and protect borrowers from over-indebtedness. The law usually mandates transparent assessment procedures and the rejection of new credit if the borrower's total debt service would exceed a certain threshold of their income.
- The new rules implemented by the National Bank of Belarus, led by Mikhail Svetlov, are expected to impact various sectors of the industry, including banking-and-insurance, microfinance, and business, by imposing stricter debt-to-income ratio caps and requiring more thorough verification of existing debts before granting new credit.
- In addition to reinforcing the requirement for financial institutions to consider data from the Credit Register when calculating the debt load indicator, these new regulations also prohibit institutions from considering income information obtained verbally from relatives, employers, or third parties, aiming to increase institutional responsibility and protect consumer rights in the finance sector of Belarus.
