Kudrin Assessed Anti-Crisis Program in Belarus at $10 Billion

20.05.2011 10:55
Архив Редакция

According to estimations of Russian Finance Minister Alexei Kudrin, Belarus will have to spend about $ 10 billion on the three-year program for economy stabilization and overcoming the currency crisis. This was reported by Alexei Kudrin on May 19 after a meeting of EurAsEC Interstate Council, taken place in Minsk.

The head of the Russian Finance Ministry says that to overcome economic difficulties, including those associated with large trade deficits, Belarus needs to take additional measures to enhance export earnings and investment in the national economy, BelTA informs.

Alexei Kudrin notes that the Belarusian government adequately assesses the current situation, taking necessary measures for its stabilization, in particular, applying to Crisis Fund Community for a loan. The loan is planned to total $3 billion for Belarus to receive within three years.

According to Kudrin, Belarus should draw another $3 billion from other sources or from the assets sale. «Belarus has enough assets to complement the lending program with the necessary amount of foreign exchange reserves, available within the next two to three years for stabilization of the economy and monetary system,» said Alexei Kudrin.

The head of the Russian Finance Ministry also believes that the possible application of Belarus to the International Monetary Fund will pose some difficulties, as the IMF requires stringent requirements, including structural reforms.

«One should chose here, and perhaps rely more on the assets sale, Belarus is abundant in. According to our estimates, such a program requires not less than $.5-9 billion over three years. Then it will ease the process of economy stabilization from the effects of global crisis, as well as will solve all the currency problems,» said the vice premier.

At the same time, Alexei Kudrin explains that Russia does not consider the sale of assets as the credit prerequisite, but feels necessity for privatization.

Finance Minister also notes that credit conditions for Belarus will be similar to the IMF ones. «Today Belarus has a huge current account deficit, abnormal for a stable economy. We need measures to reduce the deficit, for which there is already a set of standard tools, and the result should align the balance of payments with a state where it will be acceptable without such support,» said the minister.

«We do not want to use the money — part of these funds should go for an increase in international reserves. The deficit should decline while the accumulated funds should become certain reserves, some kind of insurance for future crises,» said Alexei Kudrin.

Kudrin also assures that the interest rate will be no less than the rate Russia borrows at.

As Telegraf previously reported, Prime Minister of Belarus Mikhail Miasnikovich reported on May 20 that EurAsEC Crisis Fund Minsk would loan $3-3.5 billion within three years. «Terms have already been agreed upon, as well as the sums,» emphasized the head of the Belarusian government.

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