Bankrupt regime forces Belarus into debts

By his decree Alyaksandr Lukashenka has increased the limit of the external government debt from $9.6 mln to $11 mln.

Less than a month has passed since Alyaksandr Lukashenka in his address to the "parliament" and the nation smugly stated that the authorities would be able to restore the growth of the economy before the crisis without attraction of additional credits ("We'll do without IMF credits), and now nothing is left of the self-confidence and excessive optimism, AFN writes.

Deficite of the balance of foreign trade and budget is growing, there is no progress in privatisation, investments exist only in promises and insignificant reports and memorandums; pragmatism of the Russian authorities in the issues of oil and gas deliveries to Belarus has not been changed for an inch, and at the same time the foreign political situation is deteriorating visibly, and the authorities are to blame for that as they are able to promise mountains and perform molehills.

The sad result is evident: on May 13 2010 a Decree number 245 was signedm by which the limit of the external government debt in 2010 was increased from $9.6 mln to $11 mln.

As of April 1, 2010 the external state debt of Belarus was estimated to be equal $8,451 billion. Lifting teh limit to $11 billion means that till the end of the year the authorities of the country are set to borrow at external markets and international financial organisations about $2.5 billion sovereign loan. Primarily loans in the framework of the new IMF program and eurobonds are meant.

The decree was signed on the second day of work of the IMF mission in Minsk, while representatives of the fund have made it clear that they are ready to cooperate with the Belarusian authorities in the framework of the new stad-by program. However before the fund and Belarus would achieve signing the new agreement, the Belarusian authorities would have to fulfill not only obligations stated in the framework of the previous program, but a number of pre-program requirements of the fund, many of which have unpopular character.

It should be also noted that increasing the limit of the external government debt is an obvious proof that the current regime is inapt to cope with the economic challenges the country is facing, and also fulfil its promises to voters.

And besides, Lukashenka stated for all the country to hear that if the present leadership would not be able to cope with the situation and fulfil everything that had been promised, other people would come at the presidential elections. Maybe the moment has come when one should decide what is more reasonable, to give a chance for someone to try in the first presidential term, or to try to get through the forth one...