Updated at 17:19,07-01-2021

Financial recession remains in place in Belarus – World Bank rep

belsat.eu, following interfax.by

Financial recession remains in place in Belarus – World Bank rep
Phot. REUTERS/Vasily Fedosenko
Belarus’ economy is currently in the state of financial recession, Alex Kremer, a representative of the World Bank, said on November, 13 during the World Entrepreneurship Week in Minsk.

“I do not share the opinion of the World Bank Country Manager for Belarus that financial recession remains in place in our country,” Belarusian Finance Minister Dzmitry Krutoy said.

According to the minister, there has been faster pace of investing in core assets this year. “This suggests that local and foreign entrepreneurs put their faith in our economy and economic policy,” the Krutoy stressed.

“[Belarus] banks are experiencing liquidity shortage; in addition, they have a very high proportion of bad debts. For this reason, the banking sector will not be able to expand credit activities,” said Kremer.

In his opinion, such situation may be considered as ‘financial recession’.

In 2002-2011, there was a lending surge in Belarus, Kremer recalled. Within this period, the banks’ assets grew from 16% of GDP to 66%.

“This system collapsed in 2015-2016, when Belarus ran into the issue of its balance of payments and had to back off the programme,” the top official said.

According to him, macroeconomic correction came in the form of high interest rates on and tightening requirements as to reserves. As a result, the private sector did not have access to credits, the World Bank Country Manager for Belarus stated.