No IMF loan for kolkhoz dictatorship (Video)
14:02, — Economics
The Belarusian powers and IMF cannot agree on new loans.
A source close to the government commented on the statement of Belarusian Prime Minister Mikhail Miasnikovich about the Belarusian government’s engagement in the preparation of a new program of cooperation with the IMF. The source told Interfax-West that tactical disputes that arose on the way towards a common goal, macroeconomic and financial stability in Belarus, are likely to be the reason to the failure to reach agreement:
- There will be neither new IMF program nor loans, since the concept of Belarusian economic development and the IMF’s recommendations basically contradict each other in a range of crucial issues, even though they have a common strategic goal of macroeconomic stability and sustainable development.
The difference of the positions of the Belarusian powers and the IMF regarding the people’s income, price formation, state programs and privatization dynamics is one of the key disputes.
At the same time, the source pointed out the parasitic attitude typical of the Belarusian society that still expects the state to provide for its social needs:
- The IMF’s recommendations are shocking for the society. To realize them, a consensus should be achieved between the powers and the people with their social parasitism. Obviously, the Belarusian society neither wants nor is ready to deal with a new shock, and the powers react correspondingly to these challenges. This is an issue of home politics, external factors are secondary.
According to the source, if IMF’s key recommendations (a transition to a free price forming and abolition of state programs) are met, growing social tension and economic stagnation will follow:
- The social policy of the powers limits state officials’ work dynamics and tactics of structural reforms. It dictates the state’s position in the dialogue with the IMF.
Moreover, the source pointed to the fact that the Belarusian powers aren’t ready to take responsibility for the necessary structural reforms:
- We neither want nor can do anything ourselves.
According to the source, most of Belarusian officials share the same point of view:
- We still cherish hopes that a leader will appear from outside to write a reform program and fund it. And then we’ll accuse this leader of social costs. Until the powers realize that the reforms are necessary, there will be no IMF program.
Moreover, the source reminded about the stabilization program of the EurAsEc Anti-crisis Fund that the Belarusian powers should realize before 2013:
- The program of the EurAsEc Anti-crisis Fund is rather complicated, and if a new IMF program is launched at the same time, it will cause confusion, technical complications, the programs’ criteria may contradict.
The source emphasized that with this factors “in the short-run there are no actual grounds to launch the new IMF program.”
In the end of May 2011, the Belarusian powers applied to the IMF for a new stabilization loan in order to re-finance previous loans of $3,6 bln that were taken within the stand-by program implemented from January 2009 till April 2010. In April-May the powers confirmed that the application was valid. However, it was emphasized that there are hinders – the political aspect in the dialogue with the IMF Board of Governors. A major share of the Board belongs to the USA and EU. The IMF, in its turn, stresses that the Belarusian powers should prepare a specific reform program and that all the Board members should vote for granting Belarus the loans.
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