Chris Jarvis: The IMF won't refinance the Belarus debt

The International Monetary Fund offers the Belarusian authorities to take certain measures for the sake of economic stability. This was announced by Chris Jarvis, the head of the IMF mission in Belarus at a conference held in Minsk on March 5.

The International Monetary Fund offers the Belarusian authorities to take certain measures for the sake of economic stability. This was announced by Chris Jarvis, the head of the IMF mission in Belarus at a conference held in Minsk on March 5.

For the negotiations to take place, the consent of all the power structures and adoption of the package of measures would be required for the sake of economic stability, as well as the decision of the government to take the road of profound reforms. Chris Jarvis also noted that there is a need to ensure that the program will be supported by the IMF's member countries.

"We can not try to predict what will influence the decision and the behavior of the IMF members. We would like to support the government and the National Bank [of Belarus] in elaborating secure and sound policy that would be supported by the IMF member countries. If we see good prospects that all the government structures would support the program implementation, then we can consult other countries regarding financial support ", Chris Jarvis is cited by RFE/RL.

According to the IMF expert, Belarus is able to repay the debt owed to creditors. In carrying out the necessary policy the level of Belarus' debt will remain acceptable. However, Chris Jarvis noted that "the Belarus reserves remain at a low level". He believes that on conditions that the necessary policies provided, Belarus should need to obtain additional financing. According to Jarvis, "the IMF won’t refinance the debt that the country has to the IMF".

The IMF proposes elaborating a coherent plan for the Belarusian economy. According to the IMF mission, it would be wrong to raise the salaries significantly, while the long-term stability hasn’t been achieved. Ensuring stability in the economy should become the priority for the Belarusian authorities. Among other things, there is need for the wages’ restraint.

The relative stability of the economy provides an opportunity to think on more long-term goals. Experts point out the need to maintain "sustainable level of public debt". The National Bank should ensure low inflation with exchange-rate flexibility. There is also need to define a policy of structured reforms. IMF experts, inter alia, recommend price liberalization and enhancing the role of the private sector.

The next full-scale IMF mission is scheduled for October. However, the mission representatives may arrive earlier, as the Fund has the plans of intensive interaction with Belarusian side.

The IMF review mission which arrived in Minsk on February 22, headed by Chris Jarvis, has completed its work in Belarus. The mission has held the traditional annual review of the situation in the country's economy and has made the second post-program monitoring. It has studied how the terms of the previous IMF loan are being met.