IMF refuses loan to Belarus

The International Monetary Fund (IMF) has advised Belarus to abolish the so-called "tax on parasitism".

Based on the outcomes of the Fund's mission in Minsk, the IMF also proposed that the Belarusian authorities abolish the target for the monthly salary, which should be reached by the end of 2017. Instead, the IMF recommends for Belarus "to allow enterprises to adjust their salaries based on labor productivity."

The head of the IMF mission, Peter Dolman, also reported on the suspension of negotiations for a new credit program for Belarus. He named the reason as discrepancies in the rate of implementation of reforms, in particular in the area of the state enterprises sector.

The "Decree on parasitism" obliges all residents of Belarus who were not officially employed for at least 183 days per calendar year to pay a tax of 360 Belarusian rubles (about $190). Those who cannot pay this tax will be brought to administrative responsibility, and face a fine or administrative arrest.

  IMF, Belarus, tax on parasitism