Ermakova: Belarus can do without new IMF loan

Belarus is interested in the new IMF loan, but can do without it, said the chairman of the National Bank of Belarus, Nadezhda Ermakova. Another question is the country's image, which depends on the cooperation with the international financial...

Belarus is interested in the new IMF loan, but can do without it, said the chairman of the National Bank of Belarus, Nadezhda Ermakova. Another question is the country's image, which depends on the cooperation with the international financial institution, said the head of the National Bank.

Nadezhda Ermakova said that the Belarusian authorities would like to "gradually get $3.5 billion form the IMF to refinance the old debt." "But the IMF representatives in Belarus do not hide the fact that the political situation and political issues have the greatest effect, as well as the consent of the IMF member-states to work with Belarus under the new program. This is probably the most important question," said the head of the National Bank, Telegraf said citing BELTA.

According to Nadezhda Ermakova, Belarus could do without the additional funds from the IMF, but the country should earn the money to pay off to the fund. The head of the National Bank also believes for other institutions to come to Belarus. "The World Bank and the EBRD are working with us," said the chairman of the NBB.

Ermakova: IMF recommends worsening life of Belarusians

IMF recommendations to curb the growth in real wages and possibly reduce it "do not fit into the normal understanding," said the head of the National Bank. "How can you recommend worsening people's lives?" said Nadezhda Ermakova.

"Salaries to state employees are planned in the budget expenditure. Non-payment of salaries will create an artificial budget surplus. What for? People should get paid," said the representative of the National Bank. Manufacturing enterprises won’t be able to pay higher wages if the proceeds provide no such opportunity, she said.

However, Nadezhda Ermakova believes the IMF mission has been working constructively, giving "some working tips."

Ermakova: structural reforms are underway in Belarus

Nadezhda Ermakova recalled that the IMF mission commended the work undertaken by the National Bank and its measures to stabilize the situation in Belarus. The head of mission, Chris Jarvis, said that Belarus was able to repay its debt to the IMF and other external creditors.

The IMF mission proposed structural changes in economic management, said the head of the National Bank. "With regard to the National Bank, we have resolved all principle issues and created the structure of the banking system, corresponding to the international rules," she said.

Structural changes in the Belarusian economy are underway, perhaps slowly though, said Nadezhda Ermakova. She believes it unrealistic to make all reforms in an instant. There is so-called "road map" of structural reforms in Belarus, but it is not what the International Monetary Fund would like to see, said the head of the National Bank.

As Information Service of "EuroBelarus" previously reported, Chris Jarvis deems it possible to consider the issue of the IMF financial support to Belarus under the new program.

Chris Jarvis notes it might be useful for Belarus to obtain additional funding through external borrowing to build up reserves and ensure greater reliability of the country's external position.