Belarus plans to restore its position in international rankings
To restore the sovereign ratings the government needs to actually demonstrate the reform potential and the will to implement these reforms, as well as to reach an agreement with the IMF on a new program, because in the current world situation, cooperation with the IMF is a kind of guarantee for investors.None of these prerequisites have reasons for implementation and, therefore, only expensive and mostly related loans or sale of property are opened for the Belarusian authorities.
Belarus plans to restore its position in international rankings, said Andrei Kharkovets. They were reduced by two degrees in 2011. According to the minister, the job of ratings’ support requires much more aggressive promoting and defending the interests of the country.
After repeating the slogans voiced several times to stop the emission support from banks and enterprises, the minister emphasized in his speech effective operation of each enterprise, including the search for foreign investors.
Reducing the budget possibilities of participation in financing the economy and strengthening the own capacity of each enterprise must be accompanied by the development of securities market instruments, and hence the ability to self-search of resources by the companies in this market.
High level of external debt and its approximation to the parameters of the threshold sets as the primary objectives of debt management to preserve the volume of the economically safe level, improving the debt structure and provide access to all forms of borrowing, reducing the cost of borrowing, and enforcing the state’s obligations in full. Consequently, sooner or later the Finance Ministry will face the task of producing new country bonds (Eurobonds).
Currently, the cost of borrowing on external markets for the country is very high; Belarus raises funds through syndicated loans of Russian banks, refusing at the same time from cheap loans and grants of international organizations that are not willing to lend to the restoration of the administrative-command economy.
The country's leadership has instructed the local authorities to raise minimum wages at enterprises by the end of 2019 to BYN 1,000, which would lead to an increase in the average wage in the economy as a whole to BYN 1 500. The pace of wage growth in 2017 is insufficient to ensure payroll at BYN 1000 by late 2017 without manipulating statistical indicators. In order to fulfil the president’s order, the government would have to increase budgetary expenditures on wages in healthcare and education, enterprises – to carry out further layoffs and expand the practice of taking loans to pay wages and restrict investment in modernisation of fixed assets. In 2010, the artificial increase in wages led to a threefold devaluation in 2011, an increase in the average salary to BYN 1500 will not match the capabilities of the economy and would lead to yet another devaluation.