Zaika: Belarusians need smaller wages to pay external debt
The Belarusian economist has commented on the activity of the IMF mission in Belarus and its suggestion ‘to freeze wages’.
The annual IMF mission headed by David Hoffman spent 11 days in Belarus. The head of the mission positively assessed the first steps made by the administration of the National Bank in order to deal with the crisis but noted that it was ‘essential to keep working in the direction and make the macroeconomic policy stricter’.
Belarusians’ wages should not grow, Hoffman noted.
“Belarusians’ nominal wages should stay at the same level in 2015,” the head of the mission said. The measure will help compensate for the excessive increase of Belarusians’ wages in the past few years.
Economist Leanid Zaika agrees with the IMF representative about wages because he is sure: Belarusians need to cut wages to pay the external debt.
“How are debts paid? They are paid at the cost of citizens’ wages. The average wage was $600 before the devaluation and is $400 now. The money has been spent on paying the external debt.”
