IMF recommends comprehensive reforms to enhance competitiveness in Belarus

        The International Monetary Fund (IMF) recommends Belarus to adopt a comprehensive reform agenda to boost productivity and competitiveness, reads the IMF public information notice released following the completion of the Article IV consultation and Fourth Post-Program Monitoring discussions with Belarus conducted by the Executive Board of the International Monetary Fund.
         Executive Directors welcomed the authorities’ efforts to regain macroeconomic stability following the 2011 crisis and suggested a number of recommendations to improve the economic situation. 
         Directors emphasized the need for a tight management of domestic demand to further reduce inflation, contain reemerging external imbalances, and ensure adequate capacity to meet external obligations. They welcomed the recent reduction in directed lending and recommended a further substantial reduction to a level below one percent of GDP over the medium term. Directors agreed that the NBRB should tighten liquidity conditions and stand ready to increase the policy rate if the recent declining trend in inflation is not sustained. They emphasized the importance of maintaining exchange rate flexibility as a buffer against shocks and to discourage dollarization.