Approaches to the functioning of online borrowing services have been determined in the Republic of Belarus

Approaches to the functioning of online borrowing services have been determined, as well as certain issues of leasing activities have been settled in the Republic of Belarus. The corresponding decision is provided for by Decree of the President of the Republic of Belarus No. 196 "On Online Borrowing Services and Leasing Activities" dated May 25 (hereinafter - the "Decree"), the main provisions of which come into force six months after its official publication.

The Decree sets requirements for the implementation of the activities of the operator of the online borrowing service in the Republic of Belarus, as well as the procedures for regulating the provision of loans through these services.

The Decree approved the Regulation on the Provision and Attraction of Loans through Online Borrowing Services, which regulates relations related to the functioning of online borrowing services, establishes the rights, obligations and responsibilities of operators of such services, and special aspects of their interaction with customers. A classification of online borrowing services, the specifics of concluding a money loan agreement by dint of these services, including the essential terms of such an agreement, are stipulated, as well as the rights of consumers of the services of the operator of the online borrowing service and the procedures for their protection are defined. In particular, the ceiling of interest on loan agreements concluded through the online borrowing service, as well as the maximum amount of a forfeit (fine, penalty) under such an agreement are set.

The National Bank has been defined as the regulator of the activities of operators of online borrowing services, the powers of which include maintaining the register of operators of online borrowing services and monitoring their compliance with the relevant legislation.

In addition, the Decree regulates certain issues of leasing activities. In particular, in order to prevent an increase in the debt burden and a significant deterioration in the financial condition of lessees (individuals) and avoid unfair practice of concluding lease agreements, the maximum amount of overpayment under a lease transaction (the excess of the amount of lease payments made by the lessee and the redemption value of the leasing item over the cost of the leasing item), as well as the upper limit of a forfeit (fine, penalty) under a financial lease (leasing) agreement charged to lessees are limited.

The adoption of the Decree will contribute to the further development of the financial market of the Republic of Belarus, business initiative and entrepreneurship, increase financial inclusion of the population, as well as ensure the protection of the interests of consumers of financial services.