IMF is ready to give Belarus another loan

IMF is ready to give Belarus a new loan for the program of reforms, the details of which still need to be coordinated by the parties in the near future.

The Fund has published a report summarizing the views of the Executive Board as expressed during its May 13, 2015 consideration of the staff report that concluded the Article IV consultation with the Republic of Belarus 5, following the discussions with the officials of the Republic of Belarus on economic developments and policies.

“Directors noted the authorities’ interest in a new Fund-supported program. Recognizing the benefits it could bring to the country, Directors underscored that any future arrangement would require a credible and strong commitment at the highest level to a comprehensive package of deep structural reforms and consistent macroeconomic policies. They looked forward to continued close engagement with the authorities on these issues”, - is said in the document.

“A Fund-supported program for Belarus would play a catalytic role in pursuing the change. Financial support from the Fund would help solidify the gains of the adjustments, contribute to building strong macroeconomic fundamentals, and create much needed buffers to address the inevitable economic and social costs of reforms for faster implementation”, - says the statement by Mr. Canakci, Executive Director for the Republic of Belarus.

Given that Belarus has advanced considerably in macroeconomic stabilization and that the structural reform program is currently being integrated in the draft strategy of social and economic development for 2016-2020, the authorities reiterate their strong commitment to reform and would very much appreciate the Fund’s early engagement in negotiations on a new program to ensure that the program components be legislatively approved”, - emphasizes the document.

The document highlights that a detailed roadmap for structural reform and an implementation matrix have been presented to the International Fund staff by Belarusan authorities.

We should also mark that IMF isn’t against and even supports the cooperation of Belarusan authorities and the ACF of the Eurasian Economic Community.

“Belarus has applied for a new program of the Anti-Crisis Fund of the Eurasian Economic Community, which would incorporate policy action across the macroeconomic stabilization and structural transformation spectrum”, - the document says.

“In the complicated economic conditions the Belarusian side could use an IMF credit program,“ – Belarusan Economy Minister Vladimir Zinovsky told last Friday in Minsk. According to the Minister, the loan program from IMF is very important “for supporting economic development of our state”.

“On the other hand, it would send a message to the international community and our partners in other countries stating that we are indeed a serious country, we pay off loans on time and can borrow money for the sake of changes in economic development,” he noted.