OREANDA-NEWS. June 27, 2012. The Eurasian Development Bank (EDB), which manages assets of the EurAsEC Financial Bailout Fund (FBF), reckons Belarus will succeed in restraining inflation growth within 19-22% in 2012. EDB Managing Director Sergei Shatalov made a statement to that extent in an exclusive interview on Friday.

“We find it possible,” Shatalov said. At the same time, there still remains a risk of higher inflation growth, which is a major threat to the stand-by programme, the EDB managing director said.

With regard to the inflation forecast for 2013, the EDB recommends Belarus should cut it down to 9-11%. “It would be perfect if Belarus could reduce inflation growth to the one-digit level by late 2013,” the EDB managing director said.

“Belarus is supposed to keep inflation growth within 19-22% by the end of 2012 – a forecast that seems fairly uncertain for investors, Shatalov said. To give a start to a full-fledged investment process, Belarus needs to sustain inflation prophylactics in 2013, which is the last year of the medium-term stand-by programme, in order to reduce inflation growth to 9-11% per annum,” Shatalov said.

The final forecast for Belarus’ 2013 inflation parameters will be adjusted in October 2012 by the time the FBF Board will have to consider a fourth tranche of the stand-by loan, Shatalov said.

Belarus saw the consumer price index grow 1.7% in April 2012 to compare with 1.5% in March, 1.5% in February and 1.9% in January 2012.

Belarus’ consumer price index grew 108.7% in 2011, although the initial forecast for 2011 stood at 7.5%-8.5%. Belarus’ inflation forecast for 2012 stands at 19-22%.