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The National Bank stopped issuing permits to insurance companies for foreign currency settlements under insurance contracts for individuals that provide for life insurance, including supplementary pension insurance.

The National Bank continues to implement a set of measures aimed at further de-dollarization of the economy. Thus, the Regulator decided to stop issuing new individual permits and extending existing ones to insurance companies for settlements in foreign currency under insurance contracts for individuals that provide for life insurance, including supplementary pension insurance. Information and Public Relations Administration explained, “Previously issued permits will be valid until the expiry of their validity period”. The National Bank noted that due to the implementation of earlier decisions, the level of dollarization of the national economy has already significantly decreased, for example, in May 2017 a share of foreign currency deposits within the total structure of deposits decreased to 69.3% from 75% in May 2016. To strengthen this positive trend, the Board of the National Bank decided to raise the standard of deductions by banks and non-bank financial and credit institutions to the legal reserve on the part of borrowed funds in foreign currency from 11 to 15% from July 1, 2017. The National Bank underlined that a change in the reserving standard would increase the attractiveness of savings in Belarusian rubles compared to foreign currency savings. As reported, the National Bank earlier stopped issuing new and extending existing permits for the use of foreign currency in the provision of services to individuals for air transportation and medical services.

These solutions are also aimed at minimizing the sectoral regulation of certain activities in order to ensure equal conditions for competition.

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8 June 2017
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