Prakapovich gets to IMF
- 3.02.2010, 9:33
The head of the National bank spent much time proving patronage over kolkhozes is “normal”.
The Chairman of the Board of the National Bank of Belarus Pyotr Prakapovich gained a clear-cut victory over representatives of the International Monetary Fund in a discussion on a role of subsidiary plots in financial system stability, the newspaper “Salidarnasts” writes.
The theme of successes of the National Bank in agriculture, in other words agricultural enterprises under its patronage, was raised during a visit of the IMF mission.
It is said that Pyotr Prakapovich asked the International Monetary Fund by the way whether it has a subsidiary plot. The IMF representatives didn’t understand the question. Then Prakapovich proudly told the disconnected from reality mission that the National Bank has a dozen of farms specializing in milk and meat production under its patronage.
Details are unknown, but the conversation really took place and made the mission members feel culture shock as they had had another idea of the National Bank’s functions. Belarus would have said good-bye to a standby credit, if a political decision hadn’t been taken before. However, one of the recommendations of the mission was divestment of non-core assets.
Nevertheless, Prakapovich didn’t give up. He continued proving the IMF that patronage over kolkhozes is a normal thing for the National Bank.
The dispute was long. As a result, the IMF decided the Bank can do whatever it wants if it keeps from money creation.
As Pyotr Prakapovich has recently said, the National Bank managed to agree with the Fund on selling the farms in 2 or 4 years. This period will be enough to settle things there and make them attractive for investors.
“In 2 or 4 years” in this situation means never. Many things can happen (including scaling down cooperation between Belarus and IMF) and nobody will probably remember the promise to sell agricultural enterprises in 2014.
So, Pyotr Prakapovich won’t be left without milk from the sponsored kolkhozes in the near future. By the way, it’s time for him to fulfil a more ambitious task. If the IMF deals with Belarus, it could take under its patronage a couple of loss-making kolkhozes. Such a forceful speaker as Prakapovich can convince a mission that the Fund will only gain from it...