Belarusians may face new devaluation and deterioration of living standards

Independent experts say the Belarusian authorities need to loan at least 5–6 billion dollars to support the economy.

Leanid Zlotnikau told in an interview to Euramost.org Belarus might face a “threat of the country’s stability” that would declare itself in devaluation, price growth, and deterioration of living standards.

He states that the country needs to loan 5–6 billion dollars, otherwise the gold and foreign currency reserves won’t be able to cover the negative trade balance, the formation rate of which is $600 million per month.

The expert noted that the country’s gold and forex reserves are very small and float from two to three billion dollars, which is very little by all standards. “Another problem is that the reserves are formed not from positive foreign trade balance, but from loans,” the analyst said.

“The credits that we have now and will get by the end of the year are the remaining IMF loan. Granting other credits is being discussed, but no progress is seen that makes the situation even more critical,” Leanid Zlotnikau noted.

Leanid Zlotnikau thinks that such situation will affect not only common people, but also plants and enterprises. “Many plants today are on the verge of closing, it means that the greater number of enterprises will meet the same situation,” he added.

Commenting on IMF experts’ statements on deterioration of the situation in Belarus, Leanid Zlotnikau stressed that the IMF could have foreseen it earlier. He believes the Fund could have known that its credit, even a billion, wouldn’t be enough for Belarus. “I’d like to turn your attention that they have come but don’t ask how the liberalization they demanded is being fulfilled,” the expert noted.