The new Country Partnership Framework defines the directions of the Bank's partnership with Belarus during 2018–2022.
Belarus has pursued a gradual transition path, characterized by limited structural reforms and a modest expansion of the private sector. Policies have focused on upgrading state-owned enterprises with the help of subsidies and preferential loans through state-owned banks.
The objective of the project is to improve policy alignment of the budget, consolidate cash balances, improve budget transparency and lay foundations for implementation of an Integrated Financial Management Information System (FMIS).
The economy continued to decline due to weakness in exports and final consumption. The contraction has put pressures on external and fiscal accounts as large public debt repayments come due in 2017. Economic recovery is expected to remain modest and gradual as negative feedback loops would continue to subdue domestic demand, while weak labor market could further deteriorate household incomes. Necessary adjustment measures and accelerated reforms are necessary to improve market expectations and mobilize investment for sustainable recovery. Read more...