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Lending limit for government programs to secure Belarus’ economic stability

MINSK, 6 March (BelTA) – Cutting lending under government programs might secure economic stability in Belarus, Chief of the IMF mission in Belarus Chris Jarvis told media on 5 March.

In his words, there is a connection between stability and lending. Last year showed that excessive lending of the economy under government programs caused problems. This year the government set forth a lending limit of under Br7 trillion, less than 3% of GDP. “If the task is fulfilled, it will make a good basis for stability,” he noted.

Belarus’ progress in economic growth rates and inflation reduction will largely depend on the pursued policy. According to the IMF official, prudent policies will help reduce inflation to 20% and even lower. The economic growth in 2012 is expected to be positive but not higher than 5%. If the policy is softened, the results will be different and not in the country’s favor. At the same time the IMF expects the inflation to be lower than it was in the previous year.