Economy ministry: Salaries are reduced. Situation to become more difficult in first quarter of 2009

The deputy minister of economy of Belarus Andrei Tur confirms that first rate base salary is to be reduced since December 1.

He has also confirmed that salary cut had been recommended by the International Monetary Fund.

“It’s true, we have reduced salaries (since December 1)”, A. Tur said to journalists, answering the question whether that decision had been adopted by the government.

He explained that such a decision had been caused by deterioration of the foreign economic environment for Belarus, which causes decrease of the taxable base and consequently decrease of fiscal revenues, Interfax informs.

As said by him, “there are problems from the point of view of maintaining high rates of economic growth”.

“It is important for us to maintain stability of the economic development. It is possible that the pace won’t be so fast, but there will be no recession”, A. Tur said giving reasons for the decision of the government to cut wages.

He reminded that during the crisis of 1998 the GDP of Belarus grew to 8.2%, and in 1999 it decreased to 2-3%. “These things should be taken into account,” the deputy minister said.

Commenting the connection of this decision of the Belarusian government with the talks with the IMF on granting a loan, A. Tur noted that in talks with the IMF not only the dynamics of salaries was discussed, but a broad range of measures”.

“I think their recommendations to reduce salaries were not the key issue,” the deputy minister added.