This study analyzes the effects of directed lending upon total factor productivity and GDP growth in Belarus over the period of 2000–2012.

This paper aims at visualizing adjustment mechanisms of the Belarusian economy to changes in exchange rate level and providing correspondent policy recommendations.

The study deals with a specific form of financial repression peculiar to Belarus – a mechanism of directed loans.

The author examines the role of guarantor as one of the means of securing housing credits as well as the international practice of developing mortgage lending.