Financial boost for economic pickup
Russian credit to be used to significantly stabilise foreign exchange market of the country, which should not lead to any large problems with its repayment
By Andrey Fiodorov
Mikhail Kovalev, Professor, Doctor of Physical and Mathematical Sciences and Dean of Faculty of Economics of the Belarusian State University, advanced this opinion during Economic Produces of 2013 and Estimates for 2014 Internet video-briefing.
As it is known, on December, 25, in a panel session of the Supreme State Council of the Union State, presidents of Russia and Belarus agreed on the credit level of $2bn dollars for 2014. On the following day the Government of Russia endorsed an agreement about giving to Belarus $450m of state credit at 4 percent per annum for 10 years.
“As to the repayment of their obligations, Belarus has never had any problems with it,” noted Mr. Kovalev. He remembered that during the whole of last year Belarus properly met obligations towards the World Bank and other creditors.
The Dean of the Belarusian State University didn’t think that this Russian credit is the most important economic event. “It is, let’s say, a not bad finishing touch to the year. This credit will allow us to stabilise foreign exchange markets, to boost gold and foreign currency reserves which decreased during last year. And not at cost of debt repayment, it is in virtue of specificity of their formation,” noted Mr. Kovalev.
As the Dean of the BSU explained, about a third of Belarusian reserves are made up of gold, and gold went down in value. “So the credit will piece out this difference and stabilise foreign exchange markets. This will allow us to lower the refinancing rate, money for economy will be cheaper, and it will develop faster. So, on the whole, it will give impulse to the development of our economy and of the Single Economic Space,” Mikhail Kovalev explains, sure in his opinion.