Belarus’ external debt will rise
On April 1, 2014, Belarus’ gross public debt was USD 39.1 billion (decreased by USD 350.9 million in Q1 2014). Public debt has reduced along with international reserves (by USD 935.8 million).
This means that Belarus needs new loans to repay public debt. When new loans are used to repay old debts, the economy suffers: pressure on the banking sector is increasing – banks need to raise new loans, issue state currency bonds for domestic and foreign markets, the government has to sell enterprises to Russian investors. Current reduction of the public debt is a short-term result, in the future the gross public debt will increase because of banks and other economic sectors’ debts.