Eurasian Development Bank spread a statement, expressing worries about the extensive credit expansion peculiar to the Belarusian economy.
“The efforts aimed at stabilizing the economy must be continued in order to achieve the deceleration of inflation rates, the current level of which is perceived as excessively high. Its further decreasing is necessary by the means of keeping a stringent monetary and credit as well as fiscal policy, which would increase the level of predictability of the economic situation and have a positive effect on the perception of the country risk for investors”.
According to the bank’s experts, the “noticeable worsening of the country’s trade balance since the second half of the previous year” tells about the need of the continuation of the efforts aimed at the stabilization of the economy. “In these conditions the continuation of the credit expansion will lead to the increase of the inflation rates and will weaken the balance of payments again and complicate the solution of the task of building the country’s foreign reserves up to a safe level”, — they assume in EADB.