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IMF to announce decision on Belarus’ loan request on November 24

The International Monetary Fund (IMF)’s mission has concluded its talks with the Belarusian government on its request for a $2-billion loan and the international institution is expected to announce whether it will lend the money to Minsk on November 24, the IMF office in Belarus told BelaPAN.

The IMF mission has stayed in Belarus since October 27.

There are unconfirmed reports that the IMF has told the Belarusian government to secure the rubel’s 20-percent depreciation against the US dollar, avoid raising wages amid the global financial crisis and make households pay more in utility bills if it wants to obtain the loan.

In an interview with the Wall Street Journal given on November 11, Alyaksandr Lukashenka said that Belarus’ future relations with the IMF would depend on whether the Fund would provide the requested loan.

“If they don’t give [the loan], we’ll proceed from this in our cooperation with the IMF,” Mr. Lukashenka said. “As president and head of state, I’ve warned both the government and the head of the National Bank: If in this situation, given our situation — and it isn’t like in other countries to whom they give loans — then why do we need such cooperation? We are a member of the IMF, pay fees and regularly attend International Monetary Fund meetings. Then why do we need all this if there is such an attitude to us?”

Prime Minister Syarhey Sidorski said in an interview with Reuters earlier this month that Minsk saw no serious obstacles in its loan talks with the IMF and was hopeful of “reaching an agreement.”

The premier said that the Belarusian government had provided all necessary information to the IMF.

"The [IMF] mission, the experts, all take our side, at least that’s what they tell us. Now the ball is on the side of the IMF mission," he said, adding that the IMF would have to take a decision "in the near future."

"The [IMF] credit ... is not only for Belarus, it would also be a credit for the partners from the European Union that are now involved in export-import relations with the Belarus industries," he said.

Russia agreed to provide Belarus with a $2-billion loan earlier this year. A $1-billon tranche was transferred to the country on November 18.