Deputy Prime Minister of Belarus Sergei Rumas stated on March 31 that Russia's loans, the Belarusian side had asked for, will help Belarus restrain domestic aggregate demand and "live within its means." "If this fails to happen, the country's economic situation will take a "negative vector" of development, he stated.
Sergei Rumas has reported that in the near future Belarus will provide the Russian side with all the necessary information to obtain credit. Thereafter the parties will hold talks on the completeness of the information provided, BelTA informs.
Talking about the loan conditions, proposed by the Russian side, Sergei Rumas has noted that they will require tightening of monetary and fiscal policies, as well as some structural reforms and a reduction in funding of state programs in 2011.
No Need to Reconsider Forecast Inflation Rate, Rumas
Sergei Rumas has also noted that there is currently no reason to revise the forecast level of inflation in 2011. According to him, the authorities will do everything possible to reach the previously approved parameters.
According to the official statistics, inflation in Belarus was above average in February, while the situation has improved in March, but it is expected to be above the average level. According to the vice-premier, it is largely due to the increase in utility rates. However, it is difficult to predict annual inflation in the current environment, because everything will depend on exchange restrictions in the market, said Sergei Rumas. «Today, none of the experts could say for sure how it will affect the real economy,» he stressed.
Vice Prime Minister has also drawn attention to the fact that many manufacturers use clearly overvalued rate of Belarusian ruble in the commodity pricing. In this regard, according to Sergei Rumas, the government is most likely to take additional measures to restrain inflation.
