Global financial crisis may have mid-term consequences for Belarus economy

The global financial crisis may have mid-term consequences for the economy of Belarus, Deputy Economy Minister Tatiana Starchenko said at the IX international scientific conference Forecasting and State Regulation of Social and Economic Development in Minsk on October 16. The financial market, including the stock exchange market, is insufficiently developed in Belarus so far. The fact considerably decreases the possible influence of the global financial crisis on the Belarusian economy, remarked Tatiana Starchenko. At present the share of foreign money in resources of Belarusian banks stays under 14%. The figure is not crucial. If necessary, Belarusian banks could substitute the capital even if it was entirely removed, said the official. She noted the Belarusian economy is an open one. This is why the global financial crisis may have mid-term consequences for the Belarusian economy if the economic growth in the countries Belarus mainly trades with slows down. Lower external crediting for Belarus is one of the possible consequences, said Tatiana Starchenko. The global financial crisis may affect plans to attract investors to Belarus. In her words, in 2007 major resources were channelled into the Belarusian economy by Russian banks, which borrowed money on external markets to provide loans to Belarusian companies. The considerable impact of the global financial crisis on the Russian market is important for Belarus. Due to the market decline some Russian companies and banks lost up to one third of their value in one day. All in all, the Russian stock market lost over 50% of its capitalisation. The financial crisis may cost up to 3% of the economic growth for the Russian economy on a large scale.

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