Lukashenka’s Leaky Pockets

The authorities will continue to take on unprofitable loans.

Deputy Economy Minister Dzmitry Krutoi voiced optimistic plans for the next year.

According to the official, serious sectoral risks for the Belarusian economy are not observed so the country does not plan to take on new loans in 2018.

He also added that Belarus had formed a virtually deficit-free balance of payments for 2018. And it is planned to service external payments in the amount of more than $ 3 billion at the expense of the economy, Your Country’s Tomorrow writes.

According to Alpari senior analyst Vadzim Yasub, the official's statements look strange:

– He speaks as if a loan from an international organization is a debt, and Eurobonds are not a debt at all. The placement of Eurobonds, in fact, is a loan as well, only issued in a different way. In addition, this is one of the most expensive of the theoretically available methods of lending.

The financial expert draws attention to the fact that it would be cheaper for the state to continue the dialogue with the IMF in order to take a more favorable loan in terms of the interest rate.

Making a forecast on the dynamics of Belarus' foreign debt, the analyst believes that the accumulation of loans will continue in 2018, in spite of the authorities’ statements.