Исследовательский Центр ИПМ
Kasrtyčnicki Ekanamičny Forum

Privatization vs. External Debt: the Way to Finance Current Account Deficit in Belarus

Authors: Elena Rakova, Gleb Shymanovich

During the period of 2002 -2008, Belarus’ economy showed very high growth rates amid a stable macroeconomic situation created by favorable external economic conditions. The economic situation underwent a dramatic change in late 2008 caused by the global financial crisis. The decrease in incomes from the export of oil products, a sharp drop in the demand for Belarusian investment goods in Russia led to a sharp increase in the current account deficit. It could be financed only through active external borrowing or proceeds of privatization transactions. The materials presented in this book do not intend to assess the feasibility of such scenarios. Instead, they focus on the analysis of the potential impact of this active borrowing and privatization of enterprises on the economy.

© IPM Research Center, 2009

Available only in Russian