Bank predicts worsening crisis in Belarus

The European Bank for Reconstruction and Development (EBRD) has predicted worsening crisis in Belarus, local media reported Tuesday. In its report, the bank blamed the Belarusian authorities for abuse of the administrative methods of management in the foreign exchange and consumer markets, which can only worsen the crisis in the country. "After a one-off devaluation in May, the authorities pursued a stabilization strategy based on various administrative measures and foreign exchange controls," said the report. Experts from EBRD downgraded growth forecast for the economy of Belarus for 2011-2012, citing the balance of payment crisis observed in the country. EBRD analysts said in the report blamed the balance of payment crisis for "large direct lending, rapid growth of public sector wages and pensions and loose monetary policy." According to analysts of the Bank, the growth of the gross domestic product will be 4.5 percent in Belarus in 2011. In July this figure was 5 percent. The 2012 forecast was lowered from 3 percent to 1.5 percent.