26 May 2022, Thursday, 14:01
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IMF credit to Lukashenka questionable

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IMF credit to Lukashenka questionable

The International Monetary Fund still hasn’t adopted a decision on offering Belarus stabilization loan of 2 billion dollars. At the same time, Ukraine has already received the first part of the promised 16.5 billion dollars. Economists link problems with receiving a credit by Belarus with absence of reforms in Belarusian economy.

As said by Leanid Zlotnikau, Belarus asks a credit from the IMF with such countries as Pakistan.

“As for Pakistan, they are sure to give them a loan, as the situation there could exacerbate Lord forbid, and nuclear weapons would get into arms of Islamic fundamentalists. And Belarus is under question,” said the expert in an interview to website “Zavtra tvojej strany”.

Before the IMF would grant a loan, a program of the Fund with ways of improvement the economy should be agreed upon with the Belarusian government.

“Balancing of the foreign trade balance, reducing inflation rate, limitation of administrative interference in bank sphere (interest rate policy) and so on are meant. It means that before giving a credit, the IMF makes a number of conditions. They can include issues of small and medium business development, privatization. But firstly it is certainly foreign trade balance, non-interference in formation of pricing,” the former head of the National bank Professor Stanislau Bahdankevich notes.

As said by him, it is necessary for Belarus to start living within income.

“We eat more than we create. Over nine months we have a trade balance deficit of 2 billion dollars including services, and 4 billion in goods. The IMF demands a balanced foreign trade, inflation rate reduction and bringing discipline to economy in other positions, and sets terms for that. It looks like in talks with Belarusian government the IMF had some difficulties,” Stanislau Bahdankevich said.

The Professor says that the quick decision of the question with Ukraine is connected to the fact that the Supreme Rada has adopted a package of laws aimed at improvement of economy.

“And our government does not admit there are problems in economy, though even the official statistics shows that we have a huge surplus of import over export, high inflation. Any market reform starts with de-bureaucratization of the economy, restriction of the state interference.

For instance, in the last issue of “Bankovskiy vestnik” magazine a new instruction has been published: any foreign trade operation is to be registered in the National bank which is to control trams of final pay. It means that state steps in even when some firm buys raw materials for a thousand of dollars. It’s a red tape which exists nowhere else. And there many such examples. The same situation is with the control over trade, profitability, exemption of profits to the budget or to a special development fund from enterprises if they earn a lot outside tax laws,” the expert notes.

That is why, according to the former head of the National bank, the IMF loan is open to question now.