08.06.2012 / 15:38

EDB Recommends Building Up Reserves and Lowering Inflation

This will be required for allocating the fourth tranche of EurAsEC loan to Belarus.

Eurasian Development Bank, managing funds of the EurAsEC Anti-Crisis Fund, expects further steps from Belarus on increasing fx reserves and reducing inflation. EDB Deputy Chairman Sergei Shatalov found the level of gross international reserves of Belarus as insufficient. However, the possibility of further increasing reserves is currently discussed with the Belarusian side, he said.

Sergei Shatalov believes its important for Belarus to comply with recommendations regarding the redemption of the country's foreign debt in 2013-14.

As for inflation, the EDB Deputy Chairman noted that a preliminary option was being discussed with the Belarusian authorities. It would be ideal to reduce inflation to the levels measured by single digits by the end of 2013. According to him, the projected year-end level of 19-22% is extremely uncertain to many investors.

Thanks to the anti-inflationary measures, Belarus must reach the 9-11% level of inflation in 2013.

The final forecast parameters of the Belarusian economy for 2013 will be agreed upon in October. By this time the Anti-Crisis Fund will have already decided upon granting the fourth tranche of $440 million to Belarus.

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