MINSK, Belarus - Belarus short of money, announced Tuesday that it would allow its currency to float, beleaguered effectively for devaluation to facilitate a monetary crisis spiral.
International financial institutions have been calling for a strong devaluation of the Belarusian ruble to help the flagging economy of the former Soviet Republic. The move was the latest blow to attempts to authoritarian President Alexander Lukashenko to show that he can still bring economic stability after 17 years in power.
The monetary crisis, repression more serious opposition--including the arrest Tuesday of an activist for the rights of the man suspected of involvement in a subway bombing last week - have created a sense of panic disorder in this nation of 10 million and risingoften marked the last dictatorship in Europe.
The post-Soviet Belarus, Shushkevich, told Associated Press that political survival Lukashenko is now entirely based on another Russian loan.
"It will be able to appease social tensions if the Kremlin gives him another loan," said Shushkevich. "Otherwise people will start to protest." What we see now began to resemble the collapse of the Soviet system. ?
The Government's foreign currency reserves immersed 20 percent in the first two months of the year less than 4 billion and staples such as vegetable oil and sugar began disappearing from stores that people began to accumulate the.
From next week, banks will be able to buy and sell the Belarusian ruble at a rate determine trade opened, Deputy Central Bank Chief Nikolay Luzgin said, adding that the Government "take additional measures to balance the situation on the currency market" after the next week commercial.
The dollar stood at 3074 roubles Belarusian Tuesday. Stanislav Bogdankevich, former Belarussian Central Bank Chief, told Associated Press that he expected the ruble to drop by a third party after the float.
Importing medicine and Russian natural gas will be able to purchase currency at privileged rates.
Even before the announcement, the fear of citizens had been tail for hours in the past weeks to exchange their euros rubles and dollars. Since the float will affect to the departure of the banks, it was unclear how the exchange rate on the street will be affected.
"My plan in the short term is to emigrate in Poland, said Pavel Korchevsky, 37, a businessman." "It is impossible to do business in a country where the President personally determines the rate of the dollar".
Authorities in Belarus also announced cuts sharp Tuesday, reducing the financing of programmes of investment by the construction of Office 30% and 20% State.
A social contract has long asked Belarusian to renounce their political freedoms in exchange for security and modest living standards now seems to be frayed. The April 11 explosion in the subway station more occupied the capital for an hour of peak of the evening killed 13 and injured more than 200 - first fatal bombing in a country where the opposition has been largely Pacific and militant groups have been unprecedented.
The authorities quickly arrested a man accused of placing the bomb and four alleged accomplices, but have not said who ordered the attack. Lukashenko has responded to the explosion of Metro by ordering prosecutors to interrogate opposition activists.
That some bloggers speculate that authorities may conducted the attack to divert the Belarusians in the country rapidly worsening of the economic situation.
Lukashenko has responded with characteristic bluntness.
"Only idiots and thugs can allege that, only scum can do," he said, arguing that economic problems and the subway attack had been carried out by unspecified forces who seek to control the nation.
Minsk city suburban buildings and large central avenues of monuments of the Stalin era, dull look tense, with police and military patrols deployed on the streets and subway.
"Belarus has always been known for its stability and order, but the explosion has filled fear and anguish," 46 years Dr. Zhanna Pankratova said she walked past the site of the explosion. "Who can we trust now?".
Anatoly Lebedko opposition leader provides that the Government to intensify its crackdown against dissent.
"If they announce a decision tomorrow to all members of the opposition with a hot iron of the mark, I shall be surprised," said Lebedko, who was released from a prison of the KGB earlier this month after 3 1/2 months of detention.
As if the signal, the top human rights advocacy group said that Tuesday that one of its members had been arrested, suspected of involvement.
The Belarus Helsinki Committee, said that the police kept Pavel Levinov. Police could not be reached to confirm the arrest, but the head of the Commission, Oleg Gulak, said that he had visited the police station in the capital, Minsk, where stood Levinov.
Another activist who was arrested with Levinov, but most later released said police broke into the apartment of the Levinov hold him and many others.
The arrest added to fears that Lukashenko uses the attack that killed 13 and wounded more than 200, as a pretext to pressure from political opponents.
The Government has already issued reprimands to two major independent newspapers and the Attorney General has threatened to "bring order" to the Internet, the last speech uncensored in Belarus Harbour.
During the major part of its mandate, Lukashenko has relied on energy resource cheap Belarus main sponsor and ally, Russia, to maintain a quasi-Soviet economy complete with a social safety net which contributed to its popularity with working-class and the elderly.
But Russian subsidies have fallen recently that Moscow has pushed for the most popular of the Belarus control of economic assets, such as oil refineries and chemical plants, in exchange for additional loans.
Then even that State coffers have been dry, Lukashenko raised wages in the public sector by 30 per cent before the presidential election of December to ensure his re-election. The vote has been severely criticised by international observers.
"Belarus lives within its means, and it is the President who makes it to do, said Leonid Zayiko, head of the independent reflection group Strategia." All problems emerged because he wanted to remain President and salaries raised. ?
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