Only constructive dialogue yields fruit
Belarus expecting new programme with International Monetary Fund
Belarus’ Prime Minister, Mikhail Myasnikovich, recently met the Head of the IMF Mission, David Hofman, noting the Republic’s hope for further collaboration. Mr. Myasnikovich is pleased with what has been achieved to stabilise the economy and the currency and consumer markets. He explains. “We’ve achieved a deficit-free budget and have secured growth in our gold-and-currency reserves while completely fulfilling our foreign debt obligations and planned budget appropriations. If we look at our foreign trade balance, we have a clear surplus — even when calculating by different approaches.” Of course, inflation rates could be lower but they are within the forecast range. The next major task is to expand exports, to support macroeconomic stabilisation.
Mr. Hofman believes that Belarus should continue its policy of flexible exchange rate formation and the keeping of credit borrowing within strict limits for state programmes (to avoid excess risk). He warns that raising salaries beyond growth in labour efficiency will drive inflation upwards, while affecting the exchange rate.