BELARUS NEWS AND ANALYSIS
DATE:
12/01/2009
IMF Approves $2.46 Billion Loan For Belarus
By Meena Thiruvengadam
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- As expected, the International Monetary Fund on Monday approved a $2.46 billion, 15-month standby loan for Belarus.
IMF said it plans to make nearly $788 million available to the country immediately and provide additional funds later in conjunction with quarterly reviews.
Belarus is one of several countries that have requested financial assistance from the IMF in the wake of the global economic crisis.
"The global economic and financial crisis is reducing demand for Belarussian exports and limiting the financing it receives," Juha Kahkonen, IMF's mission chief for Belarus, said in a conference call Monday. "This comes on top of some problems that are more specific to Belarus."
Belarus' economy has been growing at about a 9% clip since 2002. But the Eastern European country has kept international reserves low and faced risks from foreign-exchange policies as domestic demand and high credit growth signaled an overheating economy.
The IMF expects Belarus' gross domestic product will grow by just 1.4% this year and 2.3% in 2010. "Growth is going to suffer because of the very difficult situation Belarus is in," Kahkonen said.
Still, the IMF is commending Belarussian authorities for a recent adjustment to the country's exchange rate and for boosting interest rates while tightening spending.
"The authorities have a clear strategy to address the challenges they face," said Takatoshi Kato, IMF deputy managing director and acting chairman. "They have already adjusted the exchange rate and put in place tight fiscal and wage policies. The measures already taken and announced are strong and, with resolute implementation, will be sufficient to restore stability."
The IMF has provided similar loan packages for countries including Pakistan, Latvia and Iceland.
Source:
Archive
Subscribe Daily Newsletter:
Belarus News and Analysis Donate:
