MINSK, 26 September (BelTA) – Belarus' financial sector is stable and can handle the existing risks. The opinion was voiced by Yuri Yasinsky, Professor of the State-Building and Administration Chair of the Public Administration Academy under the President of the Republic of Belarus, as he commented on recommendations of International Monetary Fund experts, who are in favor of taking urgent measures to improve the financial stability of Belarus, BelTA has learned.
The expert stressed: “The government and the central bank are consistent in their efforts to bolster the stability of the financial system, ensure financial stability, and optimize possible risks taking into account external factors.”
A review of the quality of assets of Belarusian banks was carried out a short while ago upon the initiative of the central bank. The review proves the banking industry is stable. The review indicates that Belarusian banks have adequate capital to counteract the possible impact of negative events. Bearing results of the asset quality review in mind, the central bank and commercial banks are working to make strategic decisions to optimize the structure of bank assets and improve requirements for the systems used to manage bank risks and perform internal audits. The steps are meant to improve the trust of international creditors and investors in Belarus.
According to Yuri Yasinsky, the IMF recommends that Belarus should carry out serious reforms in the real sector to restructure enterprises among other things. “Such work is already in progress in Belarus: the procedures used to rehabilitate and bankrupt organizations are already being improved, anticrisis managers are employed if necessary,” noted the source. “Meanwhile, the IMF would like Belarus to expedite these processes. However, rushing them is not justifiable. Decisions against or in favor of pronouncing a company bankrupt cannot be taken lightly since the wellbeing of employees of the company is at stake.”
A considerable part of the IMF's recommendations deals with troubled loans and specific measures to reduce their volume. “The IMF noted that Belarus' real sector continues accumulating distressed debts. The situation has to do a lot with unfavorable external conditions,” believes the Professor. “The government is evaluating possible ways to resolve the problem in addition to determining ways to develop the real sector of the economy.”
The expert believes that the steps Belarus takes in several areas coincide with the general idea of the IMF recommendations. “At the same time a certain part of these recommendations, including recommendations to raise the retirement age, raise the cost of utilities, represent an extremely sensitive issue for the economy and the population of Belarus. They can hardly be implemented immediately in the current economic conditions,” concluded the expert.
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