‘Belarus economy is in prolonged recession’ – expert

Will another denomination be able to heal the Belarusian economy? Belsat TV journalist Valer Ruselik discusses the features of the Belarusian crisis with economist Alyaksandr Sinkevich.

The National Bank introduced new bank notes and coins which are to put in circulation in the spring of 2016, after the denomination. In spite of the timeliness of denomination, a surplus and an increase in foreign exchange reserves, Sinkevich believes that the Belarusian economy is in a prolonged recession. Our industry turned out to be in the extremely difficult situation. According to the expert, an exit from the crisis is scarcely in sight. Altough the authorities do not ignore the problem, their efforts are unlikely to improve the financial system.

The Belarusian government hope for receiving foreign loans and recruiting investors from abroad. But taking into account the current crisis, the IMF is timid about granting loans.

Belarus’ strict tying to the Russian economy contributes to a progressing recession. All the problems of our eastern neighbor do impact on the situation in Belarus, Sinkevich says.

In his opinion, another problem is that the state does not support sunrise industries, but invests in dead projects. The economy will not collapse, he says, but it will quietly sink to the bottom. Only those companies that have access to foreign markets could ride out the stagnation, Sinkevich stresses.

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