Исследовательский Центр ИПМ
Kasrtyčnicki Ekanamičny Forum
 Aliaksandr Zaretski, Cyrus de la Rubia, Robert Kirchner

PP/02/12 The impact of the currency crisis on the Belarusian banking sector

The severe balance-of-payments/currency crisis in 2011 created major turbulences in the economy of Belarus. As a result, the exchange rate depreciated massively, interest rates surged, while the inflation rate exploded to more than 100% yoy. A negative impact of the crisis on the situation in the banking system cannot be denied as well. However a systemic banking crisis was fortunately avoided. Nevertheless, a number of issues like an expected increase in non-performing loans (NPLs) in the future will continue to put pressure on the system in the medium to longer-term. Coupled with less room for additional state support in the future, these developments pose significant challenges to the authorities.