President of Belarus Alexander Lukashenko signed the Law "On Consumer Credit and Consumer Microloan" on February 18. This was reported to BELTA by the press service of the Belarusian leader.
The document is aimed at a comprehensive improvement of the legal regulation of relations in the field of lending and microfinance of individuals, as well as at increasing the level of protection of consumer rights for financial services.
The Law, in particular, provides for the provision of more detailed information to individuals on the terms of credit (microloan) and the mandatory assessment of their creditworthiness.
It establishes essential terms of consumer credit (microloan) agreements, limits the interest rate on consumer microloan agreements, and prohibits the collection of penalties for early repayment of consumer credit and additional payments for the use of credit (microloan).
Borrowers in difficult life situations will be able to receive payment deferrals.
The possibility of third parties participating in consumer lending (microfinance) on behalf of the lender (creditor) without charging fees from citizens is also provided for.
In addition, the law contains a provision on amending the Civil Code regarding the determination of the rental amount in a lease agreement (except for a lease agreement) solely in Belarusian rubles.
The innovations will contribute to the formation of more transparent and understandable legislation, and will also provide additional guarantees to citizens.