The IMF suspended negotiations with Belarus on credit allowance
The International Monetary Fund (IMF) suspended negotiations with Belarus on the credit program in order to clarify the official policies in a number of sectors of the country, as announced on Thursday by the official representative of the organization, William Murray, at a press briefing.
“Negotiations on the [credit] program have been suspended in anticipation of clarifying the Belarusian leadership’s policy regarding, in particular, state enterprises, housing, and communal services. Our next mission ... is to visit Belarus in late October,” he noted.
Murray recalled that the Fund's staff had already visited the republic last month and discussed the Belarusian economic situation with officials.
Belarus is negotiating with the IMF for a $3 billion loan as part of an expanded financing package offering a 2.28% interest rate for 10 years. Earlier, authorities claimed that they had reached agreements in many areas.
Nevertheless, there are problematic moments. The IMF requires Belarus to carry out decisive reforms in the economy.
In particular, the increase in tariffs in the areas of housing, communal services, and public transport, price liberalization, the flexible exchange rate policy implementation, the increase in the private sector’s economic share, the reduction in the financing of state programs, the reform of the state enterprise sector, and the elimination of cross-subsidization are all being discussed.