IMF: Economic Growth Rates Announced by Belarussian Government Too Optimistic

Questions of monetary and credit policy and tax and budget policy remain the biggest points of contention in the International Monetary Fund's (IMF) cooperation with Belarus. This was announced yesterday to journalists in Minsk by Tom Richardson, the head of the IMF's mission to Belarus which has started work on assessing the state of the Belarussian economy. The mission will continue its work up to February 10.

'We believe that inflation in Belarus needs to be reduced to the level of inflation in neighbouring countries,' said Richardson. In his opinion, reducing inflation requires 'a tightening of monetary and credit policy and tax policy.' The IMF experts believe that high inflation in Belarus remains one of the main reasons for the low level of foreign investment in the Belarussian economy. 'The rates of economic growth and volumes of foreign investment claimed by the Belarussian government are too optimistic,' stressed Richardson.