The Development Bank is issuing loans to Russian citizens in Belarusian rubles, Chairman of the Standing Commission of the Council of the Republic on Economy, Budget and Finance Raman Broadou said on state television. Broadou previously served as deputy chairman of the bank’s board.
“You can see that the Belarusian ruble demonstrates not only phenomenal stability against foreign currencies, but also looks quite solid on the domestic market — the Eurasian Union market. Let me return to the Development Bank’s experience.
We were probably the first in the history of independent Belarus to issue loans in Belarusian rubles to foreign nationals. Russians began borrowing Belarusian rubles, using the Belarusian ruble as a lending currency because interest rates on Belarusian loans are much lower than Russian ones, while the Belarusian–Russian currency pair remains fairly stable.
In essence, a Russian citizen takes out a loan in Russian rubles, but at Belarusian interest rates. Is this not recognition that our currency deserves not only trust but also the status of a reliable store of value?” he said.
The Bank of Russia’s key rate, which determines the cost of credit resources, currently stands at 16 percent per year, while the refinancing rate in Belarus is 9.75 percent. Last year, however, the difference was more than twofold, as Russia’s key rate reached 21 percent.