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EDB holds talks on Belarus’ stabilization program

MINSK, 4 April (BelTA) – The Eurasian Development Bank (EDB) conducted consultations with Belarus on updating its stabilization program supported by the EurAsEC Anticrisis Fund (ACF) resources, BelTA learnt from the EDB press service.

“Specialists of the Eurasian Development Bank that manages the ACF resources and Belarusian representatives held a round of consultations on 2 April to consider the parameters of the adjusted letter of intent which is envisaged by ACF Council’s Decision of 28 November 2011,” the bank said.

The consultations focused on the current economic tendencies, plans of the Belarusian Government for further stabilization. “Certain measures taken by the country were praised. Among them were tightening of monetary policy, unification and stabilization of the currency exchange rate as well as better terms for trade in energy carriers with Russia. The abovementioned considerably reduced inflation and narrowed foreign trade misbalances, contributed to the growing international reserves. Further plans of the government to reduce quasi-fiscal operations including new financing of state programs were hailed as well,” the bank added.

“At the same time the risks of negative tendencies seen before the unification of the currency exchange rate in October 2011 are still in place. The main factors for stabilization are a tough monetary policy controlling monetary expansion, further accumulation of international reserves, and a rigid fiscal policy”

The ACF Council approved a $3 billion loan for Belarus on 4 June 2011. Belarus received two tranches of $800 million and $440 million last year.

The Eurasian Development Bank is an international financial institution established by Russia and Kazakhstan in January 2006 to facilitate the development of market economy in the participating countries, their sustainable economic growth and expansion of mutual trade and economic ties. The authorized capital of the EDB exceeds $1.5 billion. The EBD member states are Russia, Kazakhstan, Belarus, Tajikistan, Armenia and Kyrgyzstan.

The EurAsEC Anticrisis Fund (ACF) in the amount of $8.513 billion was established by the Governments of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan on 9 June 2009. The ACF is to assist the participating countries in cushioning the impact the global financial crisis, to ensure economic and financial stability and promote integration in the region.