The international rating agency Moody's downgraded on Thursday the sovereign credit rating of Belarus from B2 to B3 and does not preclude further decrease.
According to the agency, the decrease of the rating is associated with the reduction of foreign aid received by Belarus to cover the negative balance of payments. The agency also notes the impact of shortages of foreign currency and a significant devaluation of the Belarusian ruble.
A further downgrade would depend on an assessment of the likelihood of obtaining additional external funding, policies aimed at correcting macroeconomic imbalances.
Moody's said that 3 billion U.S. dollars promised to Belarus by the Eurasian Economic Community over the next three years won't be enough to bridge the country's balance-of-payments gap.
In March, Moody's downgraded the country's credit rating to B2 from B1.
At the end of May, the Belarusian Central Bank cut almost in half the value of the Belarusian ruble against the dollar, causing panic across the country.
The central bank raised its benchmark interest rate by 2.0 percentage points to 20 percent in a bid to battle the country's inflation.