29 March 2024, Friday, 14:35
Support
the website
Sim Sim,
Charter 97!
Categories

What Is In Store For Belarus If IMF Doesn't Give The Coveted $3 Billion Loan?

40
What Is In Store For Belarus If IMF Doesn't Give The Coveted $3 Billion Loan?

Representatives of the IMF have arrived to Belarus and have already air discontent over behaviour of Belarusian officials.

The mission of the International Monetary Fund, which started its official visit to Belarus on June 21, has given first evaluation of the economic situation in Belarus.

Thus, the previous day the head of the IMF mission Peter Dohlman stated that official Minsk should “accelerate and deepen economic reforms.” It means only one thing - the organisation is not ready to give the coveted $3 billion to Belarus so far.

What could cause discontent of the Fund’s representatives?

– I doubt that Belarusian authorities have met all requirements of the IMF, — a financial analyst Uladzimir Tarasau noted in his comment to Salidarnasts. – It is possible that they are seeing the situation in their own way, but that does not mean that analysts of the fund are of the same view.

As said by the expert, the creditors want to see more palpable reforms by the Belarusian officials.

– It is possible that they want utility rates in Belarus to grow at a faster pace, as the growth that had already taken place, was just the first stage. It is quite possible that the IMF offers to make the rates for the population equal to 100% of their actual cost as soon as possible.

Another thing the representatives of the Fund could be displeased about is privatization, which had not started.

– In this sphere there is absolutely no progress: no one had been doing anything, and is not going to do anything either, and the IMF expects to see this process at least to start moving, – Uladzimir Tarasau said.

So what will happen if Belarusian officials could not be able to not show any progress to receive the loan?

– It is to depend from the loan, how much the GDP of Belarus is to dwindle in 2016, and what the exchange rate of the dollar will be, – the financial analyst answers. – In case we receive 3 billion, the money would make it possible for the government to slow down the economy decline rate. There would also be no necessity to buy foreign exchange to pay off debts – it could hold the exchange rate of the ruble within at least 22,000 per a dollar.

In case the loan is not given, the GDP is to be greater, and people are to see a completely different exchange rate in exchange offices, the expert believes.

– Salary and personnel cuts are to continue, – Uladzimir Tarasau concluded.

Write your comment 40

Follow Charter97.org social media accounts