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Every Fifth Belarusian To Be Fired Because Of Dictator’s Debts

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Every Fifth Belarusian To Be Fired Because Of Dictator’s Debts

The Eurasian Bank for Reconstruction and Development (EBRD) has demanded Lukashenka to cut the number of the employed by 20%.

One of the key disbalance of the Belarusian economy is an excessive employment at enterprises, which equals to about 20%. Such assessment is contained in the conclusion of the EBRD, published in connection with a programme of granting a credit to Belarus, BelaPAN reports.

We remind that in the end of Q1 Belarus concluded a treaty with the EBRD on a loan of $2 billion from the Eurasian Fund of Development stabilization. The programme envisages granting a loan in seven tranches, the first one ($500 million) was received by Belarus in the end of March.

“Any excessive employment in the economy of Belarus (about 20% according to evaluations) is one of the key factors of forming instable macroeconomic disbalances, including a disbalance between the level of real disposable income and labor efficiency,” – the conclusion of the EBRD reads.

According to the Eurasian Bank, indirect side effects of this disbalance are “price rise, pressure on the exchange rate, balance of payments and international reserves, as well as a disbalance between consumption and investments.”

“Keeping the excessive number of workers at state-run enterprises, which limits the flow of labour force to more efficient sectors and the private sector, were explained by limitations on possibilities to cut jobs, which had been included in contracts of top managers of enterprises up to 2015,” – the EBRD experts note.

According to the terms of receiving the loan, in 2016 – 2017 the Belausian authorities would have to cut support to state-run enterprises, which is provided in the form of directive loans. According to the EBRD, transition of state-run enterprises of Belarus “to a commercial track would bring about optimization of their expenses and resources, including labour resources, which is to increase the level of unemployment in the country.”

“In this situation the important factor of social stability would be development and implementation by the government of programmes for social protection of the unemployed and other vulnerable strata of the population, creating a wide network of re-skilling programmes and conditions for a free flow of labour force to the sectors with higher efficiency,” – the conclusion of the EBRD reads.

According to the published terms of granting the Eurasian loan to Belarus, “a package of regulatory acts guaranteeing due protection of workers who fall into the category of unemployed,” should be passed in the country by September 1, 2016.

As it had been reported earlier, in May the Ministry of Trade and Social Protection finished preparing a draft decision on increasing the unemployment benefits, and planned to forward the document for consideration to the government.

According to the Statistics Committee of the CIS, the unemployment compensation in Belarus is one of the lowest in the CIS, in average it is about $13 and covers only 15% of the minimum subsistence level.

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