Every Belarusian owes $2000

• 29.12.2009, 11:12

The general foreign debt of Belarus is to rise beyond 21 billion by the end of the year 2009.

The pace of growth of the general external debt of Belarus is impressing. According to the information of the national Bank of Belarus, over the three quarters of 2009, it has grown by 27.3%, and reached $19.3 billion. As informed by “Nasha Niva”, by the beginning of October the indebtedness reached 37.1% of the GDP of the country. Moreover, every quarter the rate of growth is speeding up. With such a speed, by January 1 this figure would exceed $21 billion. Meanwhile the pay-back deadline for the principal sum is drawing near.

In 9 months of 2009 $4.57 billion was sent for of foreign loans servicing. When the H-hour comes, 2012, when the money to the IMF and Russia are to be returned, the Belarusian budget would have to pull up its socks.

$21 billion – is it much or not much? Comparing with the external debt of the US, it is not a large amount at all. The US owes $13.5 trillion, and is not very concerned about that, as if they are not going to pay it back.

If we turn away from others and look at ourselves, it turns out that by the end of the year the indebtedness of Belarus is to top 40% of the GDP of the country. Every citizen of Belarus, from a baby to hundred-year-old persons, owes $1997 of external debt. According to AFN website, in the last 12 years this figure has grown more than tenfold.

For such an economy as the Belarusian one, which is not a part of the European Union with its insurance mechanisms, 50% or 60% of the GDP could be considered a dangerous threshold. Belarus can reach it in 2 or 3 years.

Meanwhile attraction of loans continues. One of these days the IMF transferred the Belarusian authorities $688 millions more. And China is ready to lend $3.5 billion for realization of investment projects with its participation.