MINSK, 30 June (BelTA) – The International Monetary Fund (IMF) recommends Belarus to strengthen market-based lending, reads the Staff Concluding Statement of the 2016 Article IV Mission that visited Belarus on 21-30 June, BelTA has learned.
“It is important to build on recent steps to bolster financial stability and strengthen market-based lending. The authorities are taking some important steps to strengthen their institutional frameworks and banking supervisory process,” the IMF statement said.
The Belarusian authorities initiated Independent Diagnostics Studies (“AQRs”) of the top 9 banks, recently established a Financial Stability Council to monitor macro-financial linkages and risks and coordinate policy responses, and undertook a comprehensive review of financial sector frameworks and development in the context of the Financial Sector Assessment Program (FSAP).
Among the IMF recommended near-term measures are: strengthening bank financial resilience; transitioning to an independent and risk-based oversight of the financial sector; maintaining a limited, well-targeted role for the Development Bank, with operations focused on areas not adequately addressed by commercial banks, such as longer-term small and medium-size enterprise lending.
An IMF mission led by Peter Dohlman visited Belarus from 21 to 30 June to assess the current economic policy and hold annual consultations with authorities under Article IV. A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.
