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Leanid Zlotkikau: Belarusians to face and devaluation

Leanid Zlotkikau: Belarusians to face and devaluation

Drop in exports to Russia has become a powerful blow on the economy of the country.

In Warsaw representatives of the Belarusian analytical workshop presented results of sociological and economic research in Belarus over November 2014, Radio Racyja informs.

Leanid Zlotnikau, an economist, notes that the deterioration of competitiveness by the Belarusian exports to Russia have hurt the economy of Belarus greatly. For example, tractors’ prices have dropped from $35,000 to $20,000.

“Today the economic situation in Belarus depends on loans completely,” Leanid Zlotnikau believes. “Over the last three months real wages are declining, and it would be difficult to keep landslide of wages in check without loans and aid from Russia or without selling half of potassium industrial complex. If that doesn’t happen, devaluation is to take place.”

As said by the economist, in order to save the situation, the government needs $15 bn.

“The economic situation in Belarus is highly tense, and if the government won’t find $4 bn to pay off the state debts and $11 bn to pay off the debts of enterprises and commercial banks, the decline in living standards of the Belarusian society is to follow for sure,” Leanid Zlotnikau said.

We remind that according to the official data, in November net currency purchase by private persons was record breaking. In December the demand is going to be at least as high, judging by the continuing growth of the exchange rates in exchange offices.

Moreover, as early as in October the balance of foreign trade deteriorated sharply, and according to the statistics of the National Bank, the situation with the balance of the exchange market in the sector of economic entities which are residents of Belarus, was peak negative (and mostly because of decreased supply of exchange, that is, drop in exports) was much worse. To some extent, it is an influence of the Russia’s ban on Belarusian exported meat, but this ban is a new one, and it could not have become so significant.

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