Official Website of the Republic of Belarus
Government
Belarus Events Calendar
Belarus’ Top Tourist Sites
UNESCO World Heritage Sites in Belarus
Belarusian sanatoria and health resorts
Souvenirs from Belarus
| Home | Government | Events

Events

8 Nov 2017

EFSD to review Belarus’ fulfillment of conditions for sixth tranche of loan

MINSK, 9 November (BelTA) – The Eurasian Fund for Stabilization and Development (EFSD) is expected to review Belarus’ fulfillment of the conditions necessary for getting a sixth tranche of the financial loan, EFSD Project Team Director Alisher Mirzoyev told BelTA.

Experts will assess Belarus’ progress in the stabilization of the macroeconomic situation, the result of some structural reforms, in particular, the increased payback on residential utilities, the correspondence of the salary growth to labor productivity, a tough fiscal policy. The council of the fund will also consider social security of workers undergoing retraining.

The Eurasian Fund for Stabilization and Development supports Belarus’ reform program for 2016-2018 with a $2-billion loan divided into seven tranches. Five tranches to the total amount of $1.6 billion have already been provided to the country, alongside with an expert support.

The implementation of the program has contributed considerably to the macroeconomic stabilization in the country.

“As of 1 September 2017, inflation in Belarus was at 6.4% per annum, compared to 12.1% the year before and an average of 28% in 2010-2015. It should be noted that the government’s success in controlling inflation was largely due to the liberalization of consumer prices that has helped to decrease the share of regulated goods and services in the CPI basket to 20%, from 33% as at the beginning of the program, and increased payback on residential utilities from 51.6% to estimated 62% (it should reach 70% at the end of the program),” Alisher Mirzoyev said.

In January-August 2017 the fiscal surplus, including off-balance expenditure, went up to 3.7% of GDP, from 1.9% year-on-year, against an average deficit of 6.2% in 2010-2015. The growth of income and the optimization of expenses were behind the quality progress. “The surplus widened thanks to the restored imports to the EAEU and the gradual economic growth in the country, as well as the increased excise rates. As for the expenditure policy, the balanced policy included an increase in wages for employees of budget-funded entities, a decrease in budgetary subsidies for utility services and transport, and also the expenses to compensate for the interest rates of directed loans and the fulfillment of the government’s guarantees,” the expert said.

The current account deficit shrunk considerably, to 2.5% of GDP, over the first six months of 2017, compared to 6.3% year-on-year and an average of 8.8% over 2010-2015. The current account deficit was influenced positively by the improved foreign trade conditions, the net sale of foreign currency by the population and the net inflow on foreign debt. In January-September 2017 the gross international reserves increased from $4.9 billion to $7 billion.

The program also envisages measures aimed at the reforming the management of state companies, including their financial rehabilitation, corporatization and the transfer to the local level. “Net financing of directed loans reduced by 1% of GDP in 2016 and by 3.2% of GDP in H1 2017. The move reduced the budget expenditure on subsidies and redeploy resources to market loans,” Alisher Mirzoyev said.

“The Finance Ministry of Belarus has developed a database on directed loans which includes all necessary information on this type of lending and can improve significantly the quality of monitoring and adopted decisions,” the expert said.

 

Archive
Su Mo Tu We Th Fr Sa
Great Patriotic War monuments in Belarus