Updated at 21:13,24-10-2016

Source: Minsk won't receive new IMF loan

09-07-2012, 11:51
Source: Minsk won't receive new IMF loan

The Belarusian authorities are unable to agree with the International Monetary Fund (IMF) on new loans because of the tactical contradictions in the way of achieving a common goal - the macroeconomic and financial stability in Belarus.

This was told to Intefax-Zapad news agency by a source close to the government, commenting on Prime Minister Mikhail Myasnikovich's statements on the interests of Belarusian government in the preparation of a new cooperation program with the IMF.

"There won't be any new programs with the IMF as well as no loans from the fund, because the concept of socio-economic development of Belarus and the fund's recommendations tactically contradict to each other on a number of key points, although they have one strategic goal- to ensure macroeconomic stability and sustainable development", said the source.

Among the main contradictions the source highlighted the difference in positions of the Belarusian authorities and the IMF with respect to the population's incomes, pricing mechanisms, the extent of government programs and privatization.

He also emphasized the dependency typical for the Belarusian society, the persistent expectations of social support from the state.

"Recommendations of the IMF is a social shock. The practical implementation of these recommendations requires a consensus between the government and the wider population, which are accustomed to social dependency. Obviously, the Belarusian society is not willing and not ready to take the next shock and the government reacts appropriately to these challenges . It is a matter of internal policy, external factors are secondary", said the source.

In his view, the implementation of key recommendations of the IMF, in particular, the transition to free pricing and the elimination of government programs, will lead to increased social tension and stagnation in the economy. "The ongoing social policy restricts the officials in the pace and tactics of structural reforms, dictating the position of the state in a dialogue with the IMF", he concluded.

The source also stressed the Belarusian authorities' unwillingness to take responsibility for carrying out the necessary structural reforms.