Belarus to negotiate new loan with IMF soon - National Bank

MINSK, September 18 (Itar-Tass) -- in late October Belarus will begin
negotiations with the International Monetary Fund /IMF/ on allocation of a
new credit, Chairman of Belarus' National Bank Nadezhda Ermakova told the
TV audience on Saturday.
"By the end of October the National Bank will begin additional
negotiations on a new loan," she said. According to her, it is a sum of
5-8 billion dollars.
The head of the National Bank pointed out that a lot will depend on
how the actions of the Belarusian authorities to stabilise the economic
situation will be evaluated. The IMF reacted positively to use of the
republic's currency free exchange rate, she said. At the same time,
Ermakova believes that the main thing is implementation of structural
reforms in the economy. With regard to the requirements of the IMF about
tightening of fiscal policies, including freeze of wage growth, she said
that the issue was not unambiguous. If we have "to change seriously the
exchange rate of the currency" in the rising inflation, we shall have to
index wages, however, the increase "should be earned."
Ermakova also reported that if Belarus receives the one billion dollar
loan from Sberbank for Belaruskali /Deputy Prime Minister Sergei Rumas had
reported there was an agreement with Sberbank/, it will be enrolled in the
foreign exchange reserves of the country.
"Funds will not go to expenses," she said.
Ermakova reported that in August the gold and currency reserves of the
republic had grown - from Azerbaijan's loan of 300 million dollars - and
now they make 4.604 billion dollars.
Last Friday, Prime Minister Mikhail Myasnikovich also said that
Belarus will not abandon the new cooperation program with the IMF and will
continue talks on granting a new credit. According to him, there are all
good reasons for it. He noted that Belarus "follows all undertaken
commitments," therefore, if the issue of granting loans "will not be
politicised from that side /IMF/, then we can count on the program."
Meanwhile, Myasnikovich noted that generally speaking Belarus can
solve problems in the economy even without the new loans from the IMF and
added as saying that "it is not critical lending."
Earlier, it was reported that the IMF plans to send another mission to
Minsk to continue the dialogue with the Belarusian authorities. The
mission may work from 5 to 17 October.