Belarus on Tuesday froze prices on a number of foodstuffs as analysts warned the former Soviet republic could descend into economic chaos and an IMF mission headed to Minsk to assess the situation. A government decree said prices for fish, tea, coffee, certain types of sausages, cheese and a number of fruits and vegetables - some of which have doubled in the last two months - cannot be raised further until July 1.
Belarus devalued its rouble by 36 percent to 4,977 per dollar last week in an attempt to reduce a current account deficit largely caused by generous public spending in the run-up to Alexander Lukashenko's re-election as president last December.
But the unofficial black market rate for roubles is still around 6,000 per dollar and the central bank has ceased intervening to support the currency after spending a quarter of its forex reserves earlier this year. Russia this month rejected Minsk's initial plea for a direct loan but said that it and several other ex-Soviet nations could still give it some joint regional assistance. They are to decide on that bailout package on June 4. Belarus imports many foodstuffs and consumer goods whose prices have in some cases doubled since March, wiping out wage rises last year that Lukashenko touted in his election campaign.
Comments
Comments are closed.