Dictatorship urgently needs IMF loan

Belarus expects a new financial program with the International Monetary Fund (IMF), Economy Minister Nikolai Snopkov told journalists in Parliament.

When asked whether Belarus can expect a new loan from the IMF, Nikolai Snopkov said: "We very much hope so”. The IMF representatives are now busy assessing whether the Belarusian side is ready for the new program. “Therefore we need to wait for a press briefing on Monday,” noted Nikolai Snopkov.

The Economy Minister added that the Belarusian government is more interested in the positive assessment of its actions than the new IMF financing. "The IMF positive assessment means a positive signal for investors. The investors’ confidence is not debt money. This is real money into the country,” said Nikolai Snopkov.

From January 2009 through April 2010 Belarus accomplished a standby program backed by a $3.5 billion IMF loan. It allowed the country to secure positive dynamics of several economy and monetary management indicators. The repayment of the loan peaks in 2013.On 17-28 October Belarus is hosting an IMF missions Led by David Hofman for the fifth post-program monitoring discussions of the Belarus economy.

On 10 October 2013 the Belarus government and the National Bank adopted a joint action plan to reform the structure and enhance the competitive ability of the national economy. Among other things the joint action plan provides for consultations with the IMF regarding the possibility of funding a new cooperation program. An Extended Fund Facility (EFF) program may be an option for the sake of supporting structural reforms in the Belarus economy in the medium term, experts believe. In comparison with a standby program an EFF program offers a longer loan term.

The International Monetary Fund is a specialized agency of the UN system headquartered in Washington, USA. The IMF was officially founded in 1945. Belarus has been an IMF member since 1992. In Belarus The IMF aims to cooperate with the Government and the National Bank in preparing programs of economic policy with a focus on fiscal and monetary policy, exchange rate and trade policies, with a view to achieving strong economic growth, low inflation and a sustainable balance of payments.

In 1992-2008 Belarus tapped into IMF resources twice: $217.2 million from the Systemic Transformation Facility and $77.4 million via the standby lending mechanism. In February 2005 Belarus fully paid out those loans.