OREANDA-NEWS. August 13, 2012. There is a link between the evolution of the debt situation in Europe and the risk that Belarus’ economy may go out of balance, the Eurasian Development Bank (EDB) said in its latest CIS macroeconomic report release in July.

EDB experts say, Belarus’ exports to all states including the CIS and China will be affected, if the debt situation in Europe aggravates further.

Furthermore, Belarus may end up facing another economic crisis, if the government should choose to loosen its grip on budget spending and fiscal control, EDB experts say.

Credit growth, which expanded 1.7% in February, 4.6% in March, 10.4% in May may signify that the government has loosen restrictions on the growth of credit activity.

EDB experts warn that a policy towards restraining the strength on the Belarusian ruble will most likely result in a new inflationary hike.

The most sensible policy the government and the National Bank may choose to follow, according to EDB experts, is a conservative macroeconomic policy aimed at retraining credit growth and boosting the country’s international reserves in order to accumulate the potential for economic growth.