Report of the International Monetary Fund, which is the result of the review mission from January 25 to February 2 in Minsk, says that IMF offers the Belarusian authorities to devalue the ruble. According to the IMF experts, it would enable authorities to rapidly reduce the deficit of payments.
However, the Belarusian authorities refused, explaining that decision by political risks, BelaPAN.
«The authorities are aware of the risks they are dealing with, but they believe that they can finance the current account deficit in 2011 through asset sales and foreign borrowing, and then five-year plan can provide external stability and high growth rates without taking drastic measures, proposed by the IMF staff,» notes the report.
In addition, the report says that the Belarusian authorities «stressed the political difficulties of partial collapsing of a recent increase in wages.» «Some officials acknowledged that the lower exchange rate would help to restore external balance, but feared that a devaluation would undermine confidence in the economy and weaken the credibility,» the report says.