Moody's: Inflation in Belarus to Reach 30% in 2012
International rating agency Moody's confirmed the negative outlook for the Belarusian banking system in 2012. This is associated with significant macroeconomic risks, especially with the fact that the government is running short of funds to support banks and economy as a whole.
Moody's experts believe that GDP growth in Belarus will slow to 0.5% by the end of 2012 (the forecast of the Belarusian authorities is 5-5.5% — Telegraf), while inflation will remain quite high and will reach 30%.
The agency experts also consider that in 2012, Belarusian banks will experience deterioration of asset quality and lower capital adequacy, as they may face lack of liquidity in foreign currency.
It was previously reported that late in April, Standard & Poor's changed its outlook on the country rating of Belarus as well as the ratings of the largest Belarusian banks from "negative" to "stable".
Meanwhile, according to the predictions of the International Monetary Fund, the year-end inflation in Belarus will reach 38.4%, while GDP growth — 3%.
Moody's experts believe that GDP growth in Belarus will slow to 0.5% by the end of 2012 (the forecast of the Belarusian authorities is 5-5.5% — Telegraf), while inflation will remain quite high and will reach 30%.
The agency experts also consider that in 2012, Belarusian banks will experience deterioration of asset quality and lower capital adequacy, as they may face lack of liquidity in foreign currency.
It was previously reported that late in April, Standard & Poor's changed its outlook on the country rating of Belarus as well as the ratings of the largest Belarusian banks from "negative" to "stable".
Meanwhile, according to the predictions of the International Monetary Fund, the year-end inflation in Belarus will reach 38.4%, while GDP growth — 3%.