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Belarus

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 29 April, 2020

General Information

Belarus will earmark about Br110 million to boost the domestic economy menaced by the coronavirus. There will be five packages. They provide for a number of monetary and prudential measures, support for the real economic sector and protection of the consumer market.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Key measures include

  • Credit holidays, i.E., Guidance to banks to postpone principal repayments and interest on loans;
  • Mitigation of a number of prudential requirements: softening of assets classification requirements (including looser prudential requirements on FX loans); increasing the maximum risk standard for one debtor; suspending indexation of regulatory capital of banks or other financial corporations; lowering the liquidity coverage ratio; and softening credit risk requirements for systemically important borrowers when calculating the normative capital adequacy ratio 
  • Softening of recommendations on interest rate ceilings on deposits and credits, and the associated risk assessment;
  • Recommendations to banks on restraining from increasing interest rates on restructured debt;
  • Partially releasing the capital conservation buffer;
  • Extending the maturity of the central bank’s refinancing loans for banks.
  • Key spending measures amount to about US$1 million, which are reallocated from other expenditure to increase healthcare-related spending.
  • Central bank foreign exchange interventions to smooth sharp fluctuations in the exchange rate (within the floating exchange rate regime);
  • Discouraging banks to:
    • Keep large margin between FX sales and purchases or overstating the exchange rate for currency withdrawals;
    • Provide additional restrictions or charge extra fees for banking operations.

Other measures and sources

  • The USA government has allocated $1.3 million to Belarus for the sake of counteracting the COVID-19 pandemic. The money was provided via the United States Agency for International Development (USAID)
  • The USAID is providing these funds to the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF). The funding will help to strengthen the national health system through technical assistance to national laboratories, surveillance and rapid response, infection prevention and control

Main sources of information

Contact us

Legal: Tatiana Ostrovskaya – tostrovskaya@kpmg.by