IMF advises Belarus to revise economic policy
The IMF mission visited Belarus on April 14th – 28th. In its statement the IMF has named shrinking international reserves as a primary risk and recommended the Belarusian authorities not to raise wages and to reduce lending to the economy. The Belarusian authorities might consider the IMF recommendations in terms of wage growth, which will be adjusted by increasing the cost of subsidised public services and weakening the national currency. However, targeted lending volumes can be adjusted downwards only insignificantly, due to problems with sales on foreign markets and the need to stimulate domestic demand. The Belarusian authorities might follow advice to allow greater flexibility for the exchange rate after the World Hockey Championships in May 2014.