OREANDA-NEWS. February 6, 2012. Belarus is supposed to prepare a new stabilization programme in the framework of partnership with the EurAsEC Financial Bailout Fund to reflect changes that took place in Belarus’ economy in 2011, EurAsEC Bailout Fund coordinator Sergey Shatalov said in an exclusive interview.

A workgroup of the Eurasian Development Bank (EDB) arrived in Minsk in early January to make an economic evaluation report for 2011 and inspect the progress Belarus had made to implement recommendations by the Council of the EurAsEC Financial Bailout Fund.

Belarus and the EDB have joined efforts to get the report and a new stabilization programme ready by late February, Shatalov said.

The idea to make a new stabilization programme was prompted by a series of fundamental economic changes that took place in the country since the moment Belarus and the EurAsEC Financial Bailout Fund started discussing a support programme, Shatalov said.

One the one hand, Belarus finally floated the ruble to introduce a market-based exchange rate, succeeded in optimizing the balance of payments and international reserves, Shatalov said. Another positive moment, was a move to cut down on monetary financing, he said. What really gives cause for concern, according to Shatalov, is that the extremely high level of inflation in 2011, which impedes living standards and affects the country’s long-term development prospects.

As previously reported, Belarus received the first, USD 800 million tranche in June 2011, following a severe financial crisis in the country. On the whole, Belarus is to receive a USD 3 billion loan over a 3-year period. The second tranche was provided in December 2011 immediately after Belarus fulfilled the preliminary conditions set by the EurAsEC Financial Bailout Fund.

To continue drawing tranches of the stand-by loan Belarus is supposed to take a hard line on the current account deficit and state budget spending, cut down on monetary financing and meet economic safety standards by replenishing international reserve assets.