Updated at 16:11,02-12-2016

Zaika: Belarus needs no new loans

Head of the Analytical Center "Strategy" Leonid Zaika is convinced that there should be no new external borrowing in the current economic situation in Belarus.

"Belarus does not need loans now. It's like a medical report: don’t take money!" Leonid Zaika said.

The economist believes it irresponsible to take new loans in terms of sufficient reserves ($8 billion) and excessive debt. Thus, the total debt of Belarus has already exceeded $25 billion, that is, every citizen of the country owes $2.5 thousand, reports "Tovarisch.online."

"Do our people realize that each family of four owes more than $10 thousand? People are not even aware of this fact. They buy cars, apply for loans ..." Leonid Zaika said.

"Why shall we take new loans? Who is going to pay them back? Some idiots have already advised Lukashenko to float Eurobonds. I've been an opponent of Eurobonds for 15 years. Now, one has to pay 14-16% per annum for these Eurobonds. They take the currency from their population under 8%, while from the foreigners - under 16%. Aren’t they idiots?" said the economist.

The contrary view was expressed by former head of the National Bank of Belarus Stanislav Bogdankevich in an interview with Telegraf. He believes Belarus will only profit from the IMF loan, as it could be allocated to stabilize the national currency. However, Stanislav Bogdankevich says that credit should be issued only if the authorities have a clear program to reduce inflation and political liberalization of the country.