Attention!
The Parliament has adopted, in its second reading, the draft law “On Amendments to Laws on the Provision of Loans”, which introduces changes to the Civil Code, as well as to the laws “On Currency Regulation” and “On Advertising”.
These rules significantly change the landscape for everyone involved in granting loans in Belarus.
Ban on Loans to Individuals
Legal entities and individual entrepreneurs (other than microfinance organisations) are no longer permitted to provide loans to natural persons.
The only exception applies to loans granted to their own employees.
Ban on Foreign Currency Loans (between individuals)
It is now prohibited to conclude loan agreements denominated in foreign currency or conditional units between individuals who are not related by family ties.
New Limits on Interest and Penalties
These restrictions apply to loan agreements between individuals.
Interest:
Penalties and Late Payment Charges:
The total amount of penalties may not exceed 50% of the loan amount.
Collateral on Sole Property
The borrower’s only residential property may not be pledged as collateral under a loan agreement between individuals (except for individual entrepreneurs).
Restrictions on Naming
Persons who are not registered as microfinance organisations are prohibited from using in their names or advertising such words as “loan”, “microloan”, “microfinance”, or “money lending”.
The full text of the draft law is available on the official legal portal: pravo.by
The new legislation requires a review and adjustment of internal loan agreement templates to ensure compliance with the new limits and prohibitions.
The REVERA team offers to:
Authors: Gleb Yakushev, Stanislau Asmalouski.
Write to us at info@revera.legal or use the “Contact a Lawyer” button to update your documents and ensure full compliance with the new law.
