OREANDA-NEWS. September 21, 2011. The International Monetary Fund (IMF) and Belarus have so far been failing to reach a consensus on the key aspects of money crediting and currency rate adjustment policies, which would facilitate the launch of a new financial support programme for Belarus.

Furthermore, in their First Post-Program Monitoring Discussions in Washington the IMF Executive Board stressed that financial support from the Fund will require demonstrated commitment to strong policies and structural reforms in Belarus.

At the same time, IMF experts welcomed Belarus authorities’ commitments under the loan agreement with the ACF. They agreed that the authorities’ plans to reduce the fiscal deficit, raise interest rates, limit lending under government programs, and unify multiple exchange rates are steps in the right direction, but stressed the importance of firm and consistent implementation.

In their report published Tuesday, Directors urged the authorities to restore external stability through further fiscal and monetary policy tightening.

Directors underscored that public wage restraint should help contain exchange rate and price pressures. They also recommended putting in place an efficient social safety net to protect the most vulnerable segment of the population.

Directors also encouraged the authorities to embark on an enterprise reform to facilitate corporate sector adjustment and strengthen competitiveness.

Directors called on the authorities to demonstrate a consistent commitment to structural reforms. They urged the authorities to step up price liberalization and make the Development Bank and the National Investment and Privatization Agency fully operational without delay.

Directors stressed that financial support from the Fund will require demonstrated commitment to strong policies and structural reforms.

The National Bank of Belarus applied to the IMF May 31, 2011 with a request for a stand-by loan. In the framework of a new cooperation program with the Fund Belarus plans to take out a loan amounting to USD 3.5-8 billion, prime minister Mikhail Myasnikovich said.

Belarus received in 2009-2010 five tranches of the IMF SBA loan totaling USD 3.46 billion. Belarus collected the final tranche of USD 670 million within the framework of the latest IMF stand-by programme in late March 2010.