Leanid Zaika: Game Called "Give Me Some Money" Is On

The Belarusian authorities have a small space for maneuvers.

Economist Leanid Zaika has commented to Radio Racyja on the relations between the Belarusian government and the IMF.

On October 1, Belarusian Prime Minister Siarhei Rumas met with representatives of the International Monetary Fund. Earlier, Finance Minister Maksim Yermalovich had said that the official Minsk did not plan to continue negotiations on a new IMF loan, as the Belarusian government and the International Monetary Fund had disagreed on the deadlines for implementing structural reforms.

– It should be understood that the International Monetary Fund is not a charitable organization, but a commercial structure, which, let’s say, takes money from Swedish banks at 1 percent, and gives it to Belarusians at 5 percent. And that’s how it makes money. Therefore, the IMF is looking for countries that still can pay. Belarus can pay, because there is a lot of state property in the country. Therefore, negotiations between the Belarusian authorities and the IMF continue, Leanid Zaika says.

– It is good to take loans, but then they will have to be repaid anyway...

– Belarusians have to pay off more than 3.5 billion dollars of debts this year alone. At that, over a billion is just the interest on debt service. Siarhei Rumas has just been appointed to the post of prime minister, but his predecessors had borrowed nearly 40 billion dollars. And now the game called "Give Me Some Money" is on again.

And three players are taking part in this game: the Kremlin, the official Minsk and money. Moscow can give about a billion dollars, the Eurasian Union, but it is probable that the IMF will allow a credit as well, as it also wants to earn on Belarus. Therefore, the negotiations with the International Monetary Fund continue. Even though the Belarusian authorities have little space for maneuvers. It is necessary either to sell the Motherland, or to continue pulling the wool over foreigners’ eyes.