Republic

Household deposits in national currency grow 7.4 per cent in two months

The household deposits in the national currency to Belarusian banks rose by over Br272 billion or 7.4 per cent in January-February 2006 from the previous year. The information department of the National Bank told BelTA that the household deposits in the national currency went up by USD 32,8 million over the period in review or by 3.8 per cent. As of the beginning of March the household deposits picked Br3,9 trillion, those in foreign currency – USD 897 million. According to specialists, the growth is significantly fueled by the policy pursued by the National Bank which is aimed at attracting deposits in the national currency and making credits more accessible for citizens and legal entities thus promoting socio-economic development of Belarus. Besides, banks hone the system of attracting people’s deposits. New lucrative terms have appeared recently and the old ones have been modified. The latter include the increase in the annual interest rate for long-term deposits, automatic prolongation of the contract with a bank and free plastic cards, monthly capitalization of interest and other novelties. The guidelines for the monetary policy of Belarus for 2006 envisage he growth in household deposits at Br1,5-1,9 trillion, or 29-34 per cent. The state guarantees security of national currency deposits only in Belarusbank, Belpromstroibank, Belinvestbank and Belagroprombank. Belarusbank, Belpromstroibank, Belagroprombank, Belvneshekonombank, Priorbank and Belinvestbank guarantee security of foreign currency deposits. Other banks secure deposits through a special guarantee fund created in the National Bank. In case a bank goes bankrupt or winds up, the population is entitled to recover the sum equal to no more than USD 1 thousand.