Belarus Asks IMF for Credit Line as Economy Falters

In spite of Russia’s promise of a $2-billion credit, the Belarusian National Bank has asked the International Monetary Fund for a loan in the same amount. 

An International Monetary Fund mission is to visit Belarus from October 27 to November 6 to examine the country's request for a credit, the Fund's office in Minsk said on Thursday. The office gave no further details of the mission, announced within hours of Belarus's acknowledgement on Wednesday that it was seeking the loan. IMF Managing Director Dominique Strauss-Kahn had announced the imminent dispatch of the mission in a statement issued in Washington on Wednesday.

“The Belarusian economy and its access to external finance,'' have been hurt by the credit squeeze, IMF Managing Director Dominique Strauss-Kahn said in the statement. ``At the same time, changing conditions in trade have negatively affected the country's balance of payments. A Fund mission will begin discussions with the authorities in the next few days.'' 

President Alexander Lukashenko is more willing to balance ties to Russia and closer relations with the European Union and the U.S.

Read more: News < Economics < News < BelarusToday

Britain: Bank and Government unveil joint lending plan

The British Government and Bank of England plan co-ordinated action to boost lending to households and businesses by providing funds to the banking sector at below-market interest rates, it emerged last night.

This major policy initiative, in which funding provision will be linked to banks' performance in sustaining or expanding lending amid "heightened uncertainty", was revealed by Chancellor George Osborne and Bank of England Governor Sir Mervyn King in speeches to the City of London at Mansion House. Sir Mervyn said it could be in place "within a few weeks".

Mr Osborne meanwhile signalled the Government was edging itself towards a Plan B by announcing a forthcoming boost to investment in Britain's infrastructure.

He also warned the eurozone woes could "still get worse before they get better" and again indicated if the UK did not get the "right safeguards" it needed to protect its interests as the eurozone integrated further, then voters might be given a say in a future referendum on EU membership.

Read more: Bank and Government unveil joint lending plan | Herald Scotland

ECB speeds up move to tighten credit

The European Central Bank is moving, more quickly than expected, towards tightening credit in the hope of reining in rising prices, especially in the euro area’s core country, Germany.

For more ECB speeds up move to tighten credit