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Belarus` financing needs for 2010 estimated at almost $5 billion

The International Monetary Fund (IMF) projects Belarus` financing needs to total $4,954 million in 2010, estimating the country`s financing sources at only $2,969 million.

Net foreign direct investment in the Belarusian economy is projected to amount to $2.32 billion, the IMF says in the third review under its Stand-by Arrangement (SBA) with Belarus, which was released on February 1, BelaPAN said. 

In the second review, the Fund estimated the country`s financing sources to total $2,754 million.

The financing gap is slated at $1,985 billion, up from $1,478 million projected in the second review. The fifth $682 million tranche of the IMF stand-by loan is expected to help the country bridge the gap partly, according to the Fund.

"Based on the adjusted target for gross revenues in 2010, the cumulative unfilled financing gap in 2010 amounts to $1,454 million," the IMF says.

The Fund notes that Russia is no longer committed to providing the final $500 million tranche of a bilateral loan, contributing to Belarus` financing gap. At the same time, it expects that the European Union will provide its $290 million financial assistance for Belarus in the first quarter of 2010. "There have been delays in processing the loan, and due to changes in the procedure following the ratification of the Lisbon Treaty," it says.

The IMF adds that "the financing gap for 2010 beyond the program period could be filled by additional financial support from the Fund if a successor arrangement is agreed, financing from other multilateral donors, and possible issuance of a Eurobond."

According to the IMF`s projections, the country`s current account deficit will amount to $3.85 billion this year.