Stanislau Bahdankevich: Loan from Russia will save our national currency from total devaluation

However, the main goal is permanent accession to the Eurasian Union, a new Russian empire.

In 2014 Belarus will get a 2-billion dollar loan from Russia. It was stated at a meeting of the State Council of Russia and Belarus in Moscow on December 25. On what terms the loan is issued? What is the price of Putin’s generosity?

EuroBelarus Information Service tried to answer the questions together with the former chief of the National Bank of Belarus Stanislau Bahdankevich.

- Moscow will issue the Republic of Belarus with additional loan funds of to $2 billion. The funds would be transferred in the form of an intergovernmental loan with maturity of up to 10 years, and only partially come from Russia's National Welfare Fund. There is no more information about the terms of the loan. What kind of loan is it, what do you think?

- According to the information available, it is a regular loan; however, I don’t know anything about the terms of it, so I’d better not guess.

The loan from Russia will save our national currency from total devaluation. Gold and foreign currency have reduced by one and a half billion, and keep reducing even more. Situation has worsened dramatically: if last year commercial banks had their own reserves, now they don’t have anything.

Though the loan from Russia might save our national currency from total devaluation, it won’t solve any problems with our economy. The main problem is export shortfall and low competitiveness of Belarusan production, both at foreign market and at domestic market. It looks like Putin is saving his friends Lukashenka.

- Why does Minsk need this loan, when Belarus’ external debt has already reached dangerous limit?

- This credit might make Belarus fully insolvent and permanently dependent on Moscow. Despite Lukashenka’s words, Belarus cannot survive without external assistance.

- Putin has, actually, made two presents to Lukashenka: first Russia has agreed on oil delivery of 11.5 million tons of oil for the first half of 2014; then Moscow has issued a loan. What will Belarus give in return?

- Moscow is already asking to transfer Mazyr refinery to the Russian oligarchs; Russia wants property. But should we blame Russia for that?

If you can’t lead economy so that you live within your means, then you have to pay in property. This year the number of unprofitable enterprises has increased by 2.2 times; management of the economy is completely ruined, no reforms are introduced.

Russia preserves the status-quo, but not because of charity. The main goal of Russia is permanent accession to the Eurasian Union, a new Russian empire. Putin implements his goals, relying on Russia’s enormous raw energy and material resources.

Except energy and raw material resources processing industry is not developing, which is good for us. On the other hand, Belarus will get neither new technologies, nor management skills. All the technologies are found in the West, not in the East.