IMF Advises Belarus Not to Lose Time but Carry out Devaluation

25.03.2011 12:00
Архив Редакция

Belarus had better devalue the currency to deal with sharp international deficit as a result of extremely soft economic policy. This was stated by the head of the Belarusian mission of the International Monetary Fund, Chris Jarvis. According to experts, a regime of austerity, a sharp reduction of budget deficits and rising interest rates would become an alternative.

«We consider depreciation a good idea,» Jarvis said in an interview with Reuter.

The head of the Belarusian IMF mission noted that «the devaluation is not the only option to correct the situation in Belarus.» «It would be the good alternative to tighten fiscal and monetary policy and rein in the growth of wages,» said Jarvis, implying that the IMF would support either this or that option, or even both, which is better.

According to Chris Jarvis, so far the Belarusian authorities have got a choice between two options. «Restrictions on the currency market do not address the fundamental problem of soft economic policy, and may even exacerbate the problem … Time presses,» warned the IMF.