Economist: Belarus Turns Into a Country of Serial Defaults

Back in 2011, or will it get worse?

What is happening in the Belarusian economy, and what awaits us in the upcoming months? The answers to these questions can be found in the new issue of the program "Let's get it right" on the Belsat TV channel.

According to economist Siarhei Chaly, the workers' strikes scared Lukashenka.

"Lukashenka was frightened most of all by the strike of Belkali miners. Because this is an enterprise that provides currency flow, on which the country now depends very much. Because the loss of confidence in the way the economic policy is carried out, and in politics in general, means that the sources of foreign exchange are getting smaller, "notes Siarhei Chaly.

He stresses that the most important factor in the economy is trust: the trust of foreign investors, domestic investors in the policy pursued in the country, and the trust of citizens themselves in the authorities. And today, the lack of this trust results in a financial crisis.

"It is obvious that the National Bank is preparing the banking system for a possible existence in the face of a shortage of currency in the market. I do not exclude at all that we will see something similar to March 2011," adds Siarhei Chaly.

If nothing changes in this situation, the economist believes, we can turn into "little Argentina, into a country of serial default":

"We will default, but still, we will not get as many resources as the economy needs. All the same, the external debt will continue to grow. "As a result, Belarus can turn into an annoying neighbor who walks around and constantly asks to be given money.