The International Monetary Fund (IMF) provided the following credit resources to the Republic of Belarus: two drawing under the systemic transformation facility (in 1993 US$ 98 million and in 1995 US$ 101.7 million) and one tranche of the stand-by credit (in 1995 US$ 70 million). Further the Fund has stopped allocation of credits for Belarus due to disagreement of the Government economic policy to the IMF recommendations.
As a result of the IMF mission’s work (January - February, 2004) within the framework of annual consultations under Article IV of the IMF's Articles of Agreement the Republic of Belarus and the National Bank of the Republic of Belarus made a statement where they agreed upon the absence of necessity to attract the IMF credit resources to our country. The parties decided that in future the cooperation of the Republic of Belarus with IMF would be mainly focused on rendering technical assistance to the republic on different aspects of its monitory policy, banking, research and development work, etc.
Starting from 2003, the IMF have provided technical assistance to the Republic of Belarus on the following aspects:
· creation of the Monitory Union between the Republic of Belarus and the Russian Federation;
· assessment of the legislation of the republic and work management aimed at counteracting legalization of profits received illegally and fighting terrorism financing;
· balance of payments’ statistics;
· evaluation of the mechanisms of the National Bank safe functioning;
· analysis of the banking sector condition and accordance of the national system of the bank supervision with the major principles of the Basel Committee effective bank supervision;
· statistics’ rating;
· joining the Special Standard of the IMF data distribution;
Besides, the IMF and the World Bank’s mission on the Program of the financial sector appraisal (PFSA) visited Belarus in September and November 2004.
Following the results of financial sector’s analysis the Memorandum has been prepared which is under consideration of the concerned State Bodies and the National Bank of the Republic of Belarus as well.
In the nearest future the main direction of the bilateral cooperation will be attraction technical assistance. It will include particular types of activities of the National Bank and the banking system as well as further strengthening of the banking system taking into account recommendations of IMF experts on the PFSA, improvement of tax system, drawing-up and statistics distribution, keeping financial reports in compliance with the international standards, initiation of measures aimed at counteracting terrorism financing and legalization of profits gained illegally.

Cooperation of the Republic of Belarus with the World Bank

Belarus became member of the World Bank in July 1992. The Republic of Belarus is a shareholder of 3323 Bank’s shares for US$ 400.9 million.
The World Bank provided the following credit resources (the total sum is US$ 184.8 million):
· Social Infrastructure Reforming Loan (2001, US$ 22.6 million);
· Forestry Development Loan (1994, US$ 33.9 million);
· Institutional Building Loan (1993, US$ 8.3 million);
· Rehabilitation Loan (1993, US$ 120 million).
The World Bank granted to the Republic of Belarus approximately US$ 15 million (ecology, privatization, social protection, forest biodiversity, ozone depleting substances).
At present the World Bank has been implementing Social Infrastructure Reforming Project in Belarus to support the rehabilitation of the heating system, thermal insulation, and lighting in over 600 buildings across the country. The total cost of the credit project is US$ 40.43 million (the World Bank’s share is US$ 22.6 million, the Government of Belarus - US$ 17.83 million).
The World Bank prepares a number of economic researches: Strengthening Public Resource Management; Improving the Business Environment; ICT Infrastructure and E-Readiness Assessments in the Republic of Belarus; and also provides technical assistance to realization of reform of pension system proceeds.
On March 14, 2002 the World Bank's Board of Directors approved Country Assistance Strategy (CAS) for Belarus from 2002 to 2004 fiscal years. The proposed CAS strategy would therefore support work in these three key areas: Global Public Goods (such as tuberculosis and HIV/AIDS); Mitigation of social risks, including the consequences of Chernobyl disaster; and Fostering private sector development through a better business and investment environment.
However in February 2004 the Government of Belarus cancelled tuberculosis/HIV-AIDS Loan due to the significantly improvement of TB epidemiological situation in the country.
At that time the Government together with the World Bank worked on identification of the project on socioeconomic rehabilitation of the areas affected by the Chernobyl catastrophe.
In August 2004 the World Bank prepared the preliminary report on realization of the current CAS for Belarus, the draft of which was forwarded to the Government of Republic of Belarus for further consideration.
On August 31, 2004 the Government presented an amendment to the above mentioned document to the World Bank.

Cooperation of the Republic of Belarus with
the International Financial Corporation

In 2003 the International Financial Corporation (IFC) granted the long-term loan (US$ 14 million) to “PriorBank” with the purposes of investment for working capital and leasing activity. That was the first credit project of the IFC in Belarus.
In August 2004 the IFC granted to "PriorBank” a credit (US$ 20 million) for financing of private enterprises in the sphere of production of goods and services, leasing activity.
The IFC continues the realization of SME technical assistance project. The main purpose of this project is establishment and development of business contacts between businessmen and associations of businessmen of Belarus and Sweden, strengthening of Belarusian associations of businessmen and expansion of a range of services rendered to members of these associations. The cost of the project is up to US$ 700 thousand.

Cooperation of the Republic of Belarus with
the European Bank for Reconstruction and Development

The Republic of Belarus is a member of the European Bank for Reconstruction and Development (EBRD) since 1992. The Republic of Belarus is a shareholder of 4000 Bank’s shares for 40 million euro or 0.2% of its authorized capital. The cooperation between Belarus and EBRD is based on the Memorandum of Mutual Understanding between the Government of Belarus and the European Bank for Reconstruction and Development, signed on 19th of February 1993 and EBRD Strategy for Belarus for 2004-2006.
The Memorandum determines base directions of EBRD’s activity in Belarus such as credit and investment operations, technical assistance in the following spheres: infrastructure, energy, financial and banking sector, structural reorganization of economy, support of business and privatization, utilization of agricultural and wood resources and others.
The Strategy of the European Bank for Reconstruction and Development for Belarus for 2004-2006 is another basic document of cooperation, approved by the Board of Directors of the Bank on 20th July, 2004.
There are several scenarios of realization of the EBRD’s strategy for Belarus.
Baseline scenario:
· portfolio management of existing investments in Belarus;
· continued support to privately owned enterprises through the existing sovereign SME Line of Credit and Bank’s Turn Around Management (TAM) programme;
· opportunity for direct investments in local and foreign private companies, including through the Direct Investment Facility (DIF) programme;
· in financial sector:
1) implementation of existing forms and programmes of financing (trade facilitation programme ), SME/MSE credit lines;
2) providing SME/MSE credit lines directly to individual private Banks;
3) expansion of the trade facilitation programme to additional bona fide private Banks.
Intermediate Scenario:
· Participation in privatization support for local private companies and foreign strategic investors;
· Encouragement of the privatization and consolidation of state Banks through the provision of technical assistance and very selective financing to the privatized Banks;
· Contribution to the commercialization and privatization of public utilities and services limited to provision of technical assistance.
Regular Scenario:
The EBRD would be able to deploy the full range of its investment and lending facilities in Belarus, including financing for public sector projects.
Within the framework of the Strategy the European Bank is going to examine a question of creation of the mechanism of crediting of Belarusian private Bank (on the sum up to 25 US$ million) without use of state warranties for financing SMEs/MSEs and individual entrepreneurs, including those who never had Bank account (did not use Bank services). Besides, this mechanism could replace the existing credit line under the state warranty, and any funds for settlement of credits during this period will be used for a support of microenterprises.
At present the Government and the National Bank of Belarus conduct the work on preparation for signing the Amendment ?4 to the Credit Agreement between Belarus and the European Bank for Reconstruction and Development of November 22nd, 1994. This Amendment will reduce the term of the EBRD’s credit line from 2012 to 2008 and at the same time the acting programme of microcrediting within the framework of the given Project for a support of SME in Belarus will be enlarged. According to this programme the borrowers, meeting the qualifying requirements, will have a possibility to receive microcredits in the sum up to US$ 10 000 and small credits - up to US$ 100 000.
As of the 1th October, 2004 the total sum of credits received by Belarus from the EBRD under the state warranties is US$ 175.5 million. At the same time the actual sum of received credits is US$ 174.04 million.
Four large projects under state warranties were realized with assistance of the European Bank for Reconstruction and Development in Belarus. Such projects, as «Development of electric communication of Belarus», «Creation of the wholesale market of fruit-and-vegetable production in Minsk», «Upgrade of thermal power station in Orsha», «Brest-Minsk-Russian Border Highway Improvement Project» are completed.
From the beginning of realization of the EBRD’s credit line on development of SME till 1st September, 2004 within the framework of the given Project 83 subprojects on a total sum of US$ 45.2 million are approved and financed, 3 subprojects from which are connected to financing leasing and a working capital (1 subproject - leasing and 2 subprojects - working capital) and their total sum constitutes US$ 113 thousand.
Within the framework of the program of microcrediting which is a part of the EBRD’s credit line on development of the SME, as of 01.09.2004 1148 projects are financed (from them 369 - projects of individual entrepreneurs) on a total sum of US$ 20.6 million. Below-mentioned figures are evidence of the effective demand on the given component of the EBRD’s credit line.
The given resources have been run in full (US$ 37.5 million) in June 2002. From this period the National Bank of Belarus began draft on funds of the turnaround account on which the sums of return of the basic debt under earlier given credits were accumulated. Now about US$ 13.3 million from this account are directed on financing of subprojects of SME and microcrediting.
Besides mentioned projects the Bank realizes also projects without granting governmental warranties. So, the Bank is shareholder of "Priorbank" (as of 01.10.2004 the joint-stock sharing of the EBRD constitutes 13.5 % or 3,5 billion rubles), Joint-Stock Company "Milavitsa" (12.68 % on the sum of US$ 936 thousand).
Since 1995 "Priorbank" is the borrower under the EBRD’s SME credit line. From 1995 till now "Priorbank" within the framework of this line financed 49 investment projects on a total sum of US$ 24.8 million. In July 2001 the program of microcrediting within the framework of which small enterprises and private entrepreneurs are financed, has been developed in order to increase efficiency of the SME credit line. For the 1st October, 2004 "Priorbank" approved within the framework of the program of microcrediting 577 subjects on a total sum US$ 12.2 million.
In 2000 "Priorbank" became a participant of the EBRD’s Trade Finance Programme. Now indicated credit line constitutes US$ 12 million. Under the short-term financing within the framework of the given line the raw material, the processing equipment, components for such enterprises, as MAZ, the republican unitary enterprise "Drugba", Production association "Belarusneft", Sugar refining combines in Slutsk and Gorodeysk, Joint venture "Belwest" were bought. From the moment of its opening the turnover of documentary payments has exceeded US$ 44.5 million. Successful work under the Trade Finance Programme has allowed "Priorbank" to sign with the EBRD on August 29th, 2003 the Agreement on a revolving credit, granting right to use up to US$ 6 million of the Trade Finance Programme credit line for the purposes of pre-export financing under bargains within one year. In 2004 the turnover within the framework of the indicated limit has reached US$ 8.8 million.
The important event in the history of cooperation of "Priorbank" with the European Bank for Reconstruction and Development became allocation of the syndicated loan in September 2003 at a sum of US$ 36 million as two credits. Six largest Banks of Russia, Austria, Germany, and Portugal became the participants of this syndicate. The EBRD give credit resources under the A-credit for US$ 12 million for the term of till three years, resources under the B-credit for US$ 24 million are granted by other participants of syndicate for a period of one year with a possibility of extension till two years. On March 15th., 2004 "Priorbank" has completely finished the excerption of resources under the syndicated loan. As of 1th October 2004 the Bank financed 86 projects on a total sum of US$79.7 million at the expense of resources of the loan.
During the 13-th annual meeting of the EBRD Board of Governors in London (on April, 18-19, 2004) "Priorbank" conducted negotiations on the further development of cooperation to Bank in the field of SME financing, microcrediting, and also mortgage crediting. In the end of 2004 between "Priorbank" and the EBRD was signed credit agreement on granting "Priorbank" at a sum of US$ 25 million for the period of 6-7 years. It is expected that early in 2005 the EBRD will make a decision to allocate US$ 10 million for financing of construction of housing accommodation.

Cooperation of the Republic of Belarus and UNIDO

In December 2004 the UNIDO/UNDP project "Creation of the infrastructure to support the innovative enterprises in Belarus" was implemented. The main purpose of it was the improvement of the infrastructure of support of innovative activity and transfer of technologies in Belarus in order to develop innovative business and increase efficiency of cooperation of manufacturers with recipients of the high technologies and potential investors.
The Republican Center for Technologies Transfer (RCTT) was established within the framework of realization of this project in Belarus. At present four regional branches in Brest, Novopolotsk, Gomel, Grodno as well as the Center for Energy-Efficient Technologies Transfer (CTEET), at Eridan, Ltd. in Homel and the Center for Information and Communication Technology Transfer at the United Institute of Informatics Problems with the National Academy of Sciences of Belarus have been set up.
In 2004 within the framework of this Project up to 600 experts had taken training courses on information management at more then 38 national and international seminars and exhibitions. The Republican Center for Technologies Transfer signed 63 clients contracts and 18 agreements in the field of technologies transfer with organizations of Germany, the United Kingdom, South Korea, Poland, Armenia, Kazakhstan, Russia. More detailed information could be found on recently opened website: www.ctt.by.
This Project is highly estimated by UNIDO experts. Particular, it is underlined that the Project was a good example of close cooperation between UNIDO, the Government of the Republic of Belarus and UNDP in carrying out the large-scale program on strengthening local potentiality based on the integrated approach and co-financing. The structural and functional model of the Republican Center for Technologies Transfer became a kind of UNIDO’s “trade mark” in the field of creating national and innovation center, which is in great demand of the developing countries.
As for further cooperation with the Republic of Belarus UNIDO considers that there is urgent necessity to extend the above named project and to start its second part for the purpose of increasing potential of RCTT.
A draft of Belarus-UNIDO Country Service Framework (CSF) is at the final stage of development. This paper was prepared by UNIDO and the State Committee of Science and Technologies with the participation of all concerned. In October 2004 it was approved by the UNIDO key departments. It is expected that the CSF will be adopted by UNIDO early in the current year.
It should be noted that this document stipulates joint implementation of international projects in which the Republic of Belarus will be regarded as donor in the field of technologies transfer.
UNIDO Concept Paper "East-South" Cooperation for International Technology Transfer between the Commonwealth of Independent States and Latin America is still under consideration by all concerned. UNIDO was informed about approaches of the Belarusian party to technologies transfer and development of technical and scientific cooperation with the developing countries. The Director of the Europe Bureau, UNIDO Program Coordination Department assured that future Belarusian-Latin Projects will be given expert and organizational support within UNIDO framework. Particular, transfer of Belarusian technologies will be in charge of Europe Bureau, Latin America headquarters in Vienna and UNIDO Regional Offices.

Cooperation of the Republic of Belarus with
the United Nations Economic Commission for Europe

The cooperation of the Republic of Belarus with the United Nations Economic Commission for Europe (ECE) in 2004 was carried out at all directions of its activity, such as power engineering, transport, trade, ecology and settlements. More than 28 delegations from Belarus have taken part in activity of the Commission’s various bodies. Belarusian representatives have taken part in traditional «Spring seminar», devoted to the questions of competitiveness and economic growth in the UNECE region, and the annual session of the Commission. The Republic of Belarus, being the group coordinator of the CIS countries, initiated and prepared the joint statement on behalf of delegations from Armenia, Belarus, Georgia, Kazakhstan, Russian Federation, Kyrgyzstan dedicated to the questions of the Commission reforming. That statement was made during the mentioned session. S.Aleinik, Permanent Representative of the Republic of Belarus to the United Nations Office and other international organizations in Geneva, is reelected as a vice-chairman of the UNECE Bureau. The joint session of the FAO Bureau of the European commission on woods and the UNECE Bureau of Committee on forest products is carried out under presidency of the Republic of Belarus. In 2004 the UNECE promoted the realization of the project «Use of a biomass for thermal energy and hot water generation», total cost US$ 8.94 million (2002 - 2007). Projects «Elimination of barriers for energy efficacy increases in public sector» and «Development of the concept on energy service companies» by cost US$ 4.4 million and US$ 50 thousand correspondingly are started. The realization of the project «Opportunities for Belarusian joining to the Kyoto protocol» is completed (US$ 45 thousand).
In 2005 «Financing for development in the UNECE region: assistance to growth in the countries with transition economies and low level of incomes» will be the topic of the UNECE "Spring seminar». During the high level segment of the annual (60-th) session, except the traditional discussion of economic development of region on the basis of the first release of the Economic review of Europe 2005, under the offer of General Assembly of the United Nations questions of financing for development, in particular performance at a regional level of decisions of the International conference on steady development will be discussed also. The Commission reforming and cooperation with the OSCE will be the main questions of the general segment.

Cooperation of the Republic of Belarus with
the Untied Nations Conference on Trade and Development

The cooperation with the Untied Nations Conference on Trade and Development (UNCTAD) in 2004 is determined by its particular importance in a sphere of trade and economic relations. The participation of Belarusian delegation in work of the 11th session of the Conference (UNCTAD-XI), which took place in June 13-18, 2004 in São Paulo (Brazil), shows the development of cooperation between Republic of Belarus and UNCTAD.
Within the frameworks of the general debate of the UNCTAD-XI named “The improvement of coordination between national strategies of the development and global economic processes in order to secure economic growth and development especially of the developing countries”, several specific questions were examined:
- economic development and capital accumulation: recent experience and policy implications;
- building competitive export capacity of developing country firms;
- partnership for development;
- assuring development gains from trade.
The Declaration called “The Spirit of São Paulo” confirms the goals of the UN member-states. The contrasts between developed and developing countries that marked the world in the early 1960s are still present today. In fact, the gap between them has increased in many respects. While globalization has posed important challenges and opened up new opportunities for many countries, its consequences have been highly unequal between countries and within countries. For all countries, it is important that, at the international level, efforts can be deployed and policies implemented in order to facilitate internal adjustments and to remove external constraints to put the developing world on a firm and sustainable path to development.
All WTO members are committed to making the results of the trade negotiations truly responsive to development concerns. The accession of developing countries, especially LDCs, and countries with economies in transition to the WTO should be facilitated.
A more positive integration of developing countries and countries with economies in transition into international trade flows and the multilateral trading system depends also on the adoption of internal policies to move up the ladder towards sectors that incorporate innovation and that expand more dynamically. To achieve these results, countries should use the ability to explore options and maintain the necessary space for policy in order to arrive at the best possible balance between different approaches in their national development strategies.
The decisions have adopted at this UNCTAD XI, in addition to the Bangkok Plan of Action, form a solid basis to build upon and are essential instruments in our continued commitment to support UNCTAD in fulfilling its mandate as the focal point within the United Nations for the integrated treatment of trade and development, on the road to its twelfth session in 2008.
In October 2004 in Geneva took place the Annual (51st) session of the UNCTAD Council on trade and development. During this session was discussed the results of the Eleventh Conference and its realization, the international economic relations, including the review of tendencies within the frameworks of the Plan of Action taken by WTO Ministerial Conference in Doha.
S.Aleinik, Permanent Representative of the Republic of Belarus to the United Nations Office and other international organizations in Geneva, was re-elected for 2004-2005 as a member of the Advisory Council, created under the terms of item 166 of the UNCTAD-X Plan of Actions.

Cooperation of the Republic of Belarus with
the International Labour Organization

In 2004 the Republic of Belarus continued the improvement of legislative frameworks in the sphere of social-labour relations within the frameworks of the further development of cooperation with the International labour organization (ILO). The Republic of Belarus received the conclusion of the ILO experts on its Law «About associations of employers» which is now under consideration in the National Assembly of the Republic of Belarus. In May 2004 the training of a specialist from the Ministry of labour and social protection was organized in the educational center of the ILO in Turin.
In November 2004 the arrangement with the ILO management on renewal in 2005 of work on preparation of the program of technical cooperation of the Republic of Belarus and the ILO was achieved, taking into account the end of work of the ILO Commission on investigation and position of the Government of Belarus concerning recommendations at 291-st session of Administrative Body.
In 2004 the Republic of Belarus fulfilled the obligations of the ILO Charter, concerning preparations of annual reports on application of ratified conventions of the ILO. Ministry of labour and social protection prepared and presented at the ILO reports on application in our Republic of the ILO conventions ?? 16, 29, 81, 105, 108, 138, 150, 151, 154, 160, 182, and also reports on condition of the legislation and practice concerning the questions mentioned in the Convention of 1919 about the limitation of working hours at the industrial enterprises ( 8 hours per day) and forty eight hours a week (? 1) and Conventions of 1930 on regulation of working hours in a sphere of trade and in establishments (? 30).
In 2004 the Government of the Republic of Belarus on behalf of Ministry of labour and social protection and other state bodies continued the cooperation with the ILO concerning freedom of association and the rights of trade unions.
The Commission on investigation during its work from 15 to 24 of April 2004 has visited Minsk, where it had consultations in the state bodies (including Council of Ministers of the Republic of Belarus and Administration of the President of the Republic of Belarus), and also with representatives of trade unions and associations of employers.
The official hearings of the Commission took place in the ILO headquarters in Geneva on April, 27-28, 2004. The Government of the Republic of Belarus was represented by Ministry of labour and social protection and Ministry of justice.
In July, 2004 the Commission has finished preparation of its Report «Trade-union rights in Belarus». This Report contains the analysis of application of Conventions the ILO ? 87 and ? 98 in our Republic, and also includes recommendations to the Government of the Republic of Belarus accept of some measures directed on perfection of the legislation and practice of law application in the field of freedom of association and the rights of trade unions. The Commission established the term for the realizing of its recommendations – the 1st of June, 2005.
The Commission has expressed its appreciation to the Government of the Republic of Belarus for the full cooperation it provide in respect of all aspects of the Commission’s work. It is also mentioned in the report that the Government of the Republic of Belarus to the full participated in the formal hearings in Geneva, having shown thus the intimate and open attitude. The Commission is grateful to the Government of the Republic of Belarus for this spirit of cooperation which has played a significant role in carrying out of the Commission functions and tasks in the effective way.
The question on the Report of the Commission on investigation is considered within the framework of the agenda of 291-st session of the Administrative Body of the ILO, which took place in November, 2004. As a result of consideration of the given point of the agenda the Administrative Body decided to take into account pointed report and viewpoint of Belarusian Government.
Antonina Morova, Minister of labour and social protection, was the head of Belarusian delegation at the 291-st session.