News: Emergency loans to Belarus

More emergency funds make the IMF loan to Belarus total $2.23 Billion. This is almost purely economic stimulus money to keep things afloat, but I have to wonder if this money would be better used for other things. Either way $2.23 Billion is nothing to sneeze at. The impacts to funding infrastructure projects will likely be seen in a few years after all the economic issues level out, or get worse. Money is going into keeping the economy stable, but with no long term investments in public goods, there's going to be a severe lack of functional infrastructure whether it's education or roads:

“The International Monetary Fund (IMF) on Wednesday granted Belarus access to $700 million worth of emergency funds, bringing a crisis-easing loan package to $2.23 billion. The IMF executive board said Minsk's economic performance had warranted the disbursement of about $699.5 million, part of a $3.63 billion package….” [Agence France Presse/Factiva]

Reuters adds that “….IMF Deputy Managing Director Takatoshi Kato said the country had made ‘good progress’ in adjusting its policies to weather the global financial crisis…. ‘Exchange rate adjustment has helped reduce external vulnerabilities, with the present exchange regime providing a buffer against external shocks,’ Kato said. ‘The adjustment has been supported by a tight fiscal policy, with revenue shortfalls offset by spending cuts, and by an interest rate policy that has kept market rates high in real terms,’ he added….” [Reuters/Factiva]

Bloomberg writes that “…Belarus’ trade deficit widened more than 77 percent in the first half of the year to $3.95 billion from a $2.23 billion shortfall in the same period in 2008, according the National Statistics Committee. Exports to Russia, the country’s main trading partner, plummeted to $2.96 billion from $5.57 billion in the first six months of last year…. ‘Securing sufficient financial resources from the international community is essential for Belarus’ reform efforts,’ Kato said….” [Bloomberg]