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Lukashenka: IMF may reject Belarus' loan request only on political grounds

 

The International Monetary Fund (IMF) may reject Belarus’ request for a stabilization loan only on politically motivated grounds, Alyaksandr Lukashenka said at a news conference in Minsk on Friday.

“There are no grounds other than politics for denying us the loan,” Mr. Lukashenka said, noting that the European Union and the United States might block the request.

“We harbor no illusions,” said Mr. Lukashenka. “We have done in double measure what the IMF demands.”

There are no plans to sharply increase pay in the government-funded sector, he said, noting that a significant rise would spark inflation.

Belarus has also devalued the national currency, he said. “They proposed [a devaluation of] 25 percent, while we have slightly more than 50 percent.”

The Belarusian leader said that the government had also abolished “almost all" price controls. “Only after they began going beyond the limit, we filed them down a bit,” he noted.

As for the IMF’s demand that the Belarusian government should unify the country's multiple exchange rates and stop interfering in economic processes, Mr. Lukashenka said that the country needed the loan to comply.

He said that the IMF wanted him to act as a guarantor responsible for the fulfillment of promises made by the National Bank and the Council of Ministers, noting that he would consider the proposal. “If our government agrees, I will act as a guarantor. Why not?” he said.

The Council of Ministers and the National Bank of Belarus applied to the IMF for the stabilization loan on May 31. Prime Minister Mikhail Myasnikovich told reporters the following day that Belarus was seeking to borrow $3.5 billion to $8 billion from the Fund. // BelaPAN