Belarus regulated microfinance

On December 15, the President of Belarus signed a Decree aimed at improving the regulation of microfinance activities in the country. According to the new act, amendments have been made to a number of regulatory documents. In particular, the provision of funds under one or more microloan agreements will now fall under microfinance regulation.

Mobile communication operators will gain the right to conduct microfinance activities. This will allow them to issue consumer microloans electronically without collateral, with a total amount not exceeding 200 base units per borrower on the date the contract is signed.

Commercial microfinance organizations meeting the criteria of the National Bank will be allowed to provide consumer microloans through online services without collateral. The available amounts will also be limited to 200 base units per borrower on the date the contract is signed.

For minors aged 14 to 18, entering into consumer microloan agreements with commercial microfinance and specialized organizations will require written consent from one of their legal representatives.

Context

These changes are part of government efforts to strengthen oversight of financial services and protect consumers.