Zlotnikau: Belarus's economy needs $1bn of foreign aid per month

• 26.03.2012, 12:01

Economist Leanid Zlotnikau notices the problems that caused last year's crisis still exist today.

“The main reason is that the country, I mean both population and the government, consumers more than economy can allow,” the expert told Belsat TV.

According to Zlotnikau, the country's needs exceeded production by 7.5% in 2011. In 2010, the needs were twice as much as production. “The country continues to live beyond its means – consumption exceeds capabilities, but on the other hand, the time has come to pay the debts for living beyond means in the previous years. The situation remains the same,” the economist stresses.

According to Leanid Zlotnikau, external financial flow is needed to keep the living standards in the country on the current level. “The flow must be about $1bn per month. In this case, the situation will be kept on the current level without further declining the standards of living,” Leanid Zlotnikau said.

The expert stressed there was a way out of the situation, but “radical economic reforms” were needed. “I mean creating conditions for attracting foreign investments and new technologies. There have been talks about creating these conditions for three years, but we do not see any direct foreign investments that would help us,” the economist added.