Belarus, which sharply devalued its national currency in spring amidst an acute financial crisis, will spend the first $800 million tranche of a stabilization loan from the Eurasian Economic Community (EurAsEC) on stabilizing its currency market, Belarus Prime Minister Mikhail Myasnikovich said on Thursday.
EurAsEC, a post-Soviet economic bloc led by Russia, approved a $3 billion bailout loan for the ex-Soviet republic early in June. The first tranche was transferred to Belarus on Tuesday.
"We'll use the $800 million rationally, to balance the foreign exchange market. Currently there are some problems with currency conversion," the premier said.
Belarus expects to resolve its economic problems in one to two months, Myasnikovich said.
The Belarusian ruble experienced pressure in the first five months of the year from a large trade deficit, generous wage increases and loans granted by the government ahead of the December 2010 presidential elections, which spurred strong demand for foreign currency.
In spring, the country's authorities devaluated the national currency by 36 percent in one day, froze prices on some staple foods and introduced fuel rationing to keep the lid on the deepening financial crisis.
The Belarusian authorities also said the country intended to raise up to $8 billion from the International Monetary Fund to stabilize its finances.
