The government of Belarus reportedly has issued a draft decree that would regulate microfinance institutions (MFIs). The decree would set the minimum capital requirement for MFIs at USD 136,000 and the maximum size of microloans at USD 18,000. The decree also provides for the National Bank of the Republic of Belarus (NBRB), the central banking authority of the country, to maintain a register of legal microfinance lenders in an effort to prevent fraud such as pyramid investment schemes. The decree also mandates that all MFIs submit financial data to NBRB periodically. MFIs are also required to provide annual interest rates borrowers as opposed to daily interest rates, which can mislead customers into thinking that interest rates are lower than they are.
No MFIs in Belarus have reported date to the US-based nonprofit Microfinance Information Exchange (MIX) since 2001.
By Brendan Millan, Research Associate
About the National Bank of the Republic of Belarus (NBRB)
Established in 1922, NBRB is the central banking authority of Belarus. The main objectives of NBRB include maintaining the stability of the nation’s banking system, currency and interbank settlement systems. NBRB is also engaged in researching and developing policies on financial inclusion.
Sources and Additional Resources:
[1] Belarusian Telegraphic Agency: “Belarus president decree on microfinance up for public hearings”, http://news.belta.by/en/news/econom?id=705342
MicroCapital.org story, September 3, 2012, “National Bank of Belarus Develops Financial Literacy Program”, https://www.microcapital.org/microcapital-brief-national-bank-of-belarus-develops-financial-literacy-program/
MicroCapital.org story, October 28, 2011, “EU Pledges Additional €5m to EBRD’s Small Business Programmes in Eastern Europe”, https://www.microcapital.org/microcapital-brief-eu-pledges-additional-e5m-to-ebrds-small-business-programmes-in-eastern-europe/
MicroCapital.org story, June 15, 2011, “Triodos Invests in Microfinance Institutions (MFIs) KixiCrédito of Angola, Advans Ghana, Arnur Credit of Kazakhstan, Belarusian Bank for Small Business, Kompanion of Kyrgyzstan”, https://www.microcapital.org/microcapital-brief-triodos-invests-in-microfinance-institutions-mfis-kixicredito-of-angola-advans-ghana-arnur-credit-of-kazakhstan-belarusian-bank-for-small-business-kompanion-of-kyrgyzstan/
MicroCapital Universe Profile: National Bank of the Republic of Belarus (NBRB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+the+Republic+of+Belarus+%28NBRB%29
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