Chaly: Authorities will agree to IMF conditions
The International Monetary Fund will continue to cooperate with our country only after "resolute implementation of the ambitious program of reforms."
On May 19, it became known that the International Monetary Fund urged the Belarusian authorities to "take bold and determined action to implement the program of reforms" to improve the role of the market in the Belarusian economy, increase productivity, competitiveness and sustainable growth. According to the IMF, the reform program should include price liberalization, measures to bring tariffs for public utilities and transport to the level of full cost recovery. For details, see here.
Fund management indicated to the official Minsk that the support of the Fund will be possible only if the highest ranking officials in Belarus "rigidly adhere" to "deep structural reforms." Economist Syarhei Chaly believes that the Belarus authorities will agree to the conditions of the International Monetary Fund. According to expert, the need for these reforms was evident even after the crisis in 2011, which was a systemic crisis of the old economic model where economic growth does not exceed 1-2%.
Here's what Mr Chaly said in commentary to Euroradio:
"Absence of reforms means that we are doomed to small, close to zero percent economic growth rate, absence of income growth and gradual degradation of the industry - what we are seeing now. And the longer we postpone them, of course, the worse situation will follow. And this program is precisely the hope that we can get some new sources of growth."
Chaly said that every year, when international experts come to the IMF, they openly say that there are no longer disputes on the state of the Belarusian economy and they know what it takes to help it. "That is all depends solely on the political will. And judging by recent events, it has gradually matured," adds the economist.
As confirmation of his words, Chaly mentioned the visit of the Deputy Executive Director of the IMF's Min Zhu, which is scheduled for May 29. A high ranking official like this is not coming to solve minor issues, the economist said. At the same time, Belarus can expect serious reforms as well as large and long financial support program from the International Monetary Fund.
Photo: Reuters, Euroradio
