The IMF to Continue Talks on a New Loan for Belarus in Autumn

25.05.2010 14:13
Архив Редакция

Belarus and the International Monetary Fund will continue negotiations on a new loan in autumn. It was reported on May 25 by the head of the IMF mission in Belarus, Chris Jarvis. "Over the next few months, we will continue to maintain contacts with Belarusian authorities", the representative of the IMF said.

«We plan to come back here for further discussions in early autumn. We’ll make a new assessment of the economic situation in the country and work out an estimate for the authorities, whether Belarus needs a new program with the IMF», BelTA quotes Chris Jarvis.

«If the government and National Bank of Belarus are interested in new program with the IMF, then the Fund is ready to provide such support and develop a program which will include considered measures of economic policy», the head of the IMF mission in Belarus added.

Belarusian economy is on the road to recovery, the IMF

Moreover, Chris Jarvis noted that thanks to rapid economic growth in the first quarter of 2010, Belarus’ economy is on the road to recovery. «The inflation remains low, and the deficit of current account of payments’ balance in the first quarter of 2010 was lower than in the first quarter of 2009, and it is a good sign», the expert said, adding that the foreign debt of Belarus remains low according to international standards, what is «a big advantage of the republic in the current international environment».

 According to the Fund representative, the IMF concerns a little about the pace of economy crediting growth and statements about wage increase. «We believe that wage growth must be based on working efficiency growth», Chris Jarvis stressed. «In this regard, Belarus should pursue a tough policy towards the budget and salaries».

«We want to work closely with the country’s authorities to implement some ideas. If there is a new program with Fund, we would like to incorporate these ideas into the program», the expert said, adding that it is on measures to improve productivity at state enterprises, and the need to increase private sector contribution to economic growth in Belarus.

The talks between IMF and Belarus were very efficient, Jarvis

The head of the IMF mission in Belarus said that the Fund also advise to develop banking and financial sectors to make private enterprises have access to credits. According to Chris Jarvis, the IMF considers it necessary to continue reducing the tax burden. The privatization is also very important.

However, the basic principle of the IMF on this issue is in the fact that if a company can work more productively in the private sector than in public, it should be privatized, the IMF official noted.»In this connection, a great importance is attached to Belarus’ plans on the establishment of investment and privatization agency. With regard to exchange rate policy, the IMF recommends to continue the existing exchange rate policy», the expert said.
 
«In general, we completed very productive negotiations with the Belarusian government and National Bank. Cooperation between Belarus and the IMF can be continued through further discussions or in the frames of the next the new program, supported by means of the Fund», Chris Jarvis summed up.

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