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Lukashenko sacks Belarus central bank chief

19 July 2011 08:33 (UTC +04:00)

Baku - APA-Economics. National Bank of Belarus chief Pyotr Prokopovich was "relieved of his duties," the official Belta news agency quoted a decree signed by Lukashenko as saying.

The bank has repeatedly hiked interest rates in a bid to grapple with the economic crisis that has sparked spiralling inflation, massive currency devaluation and forced the government to put price controls on some key goods.

Prokopovich’s departure is highly symbolic as he has headed the national bank since 1998 and was seen as one of the architects of the so-called Belarussian "economic miracle" under Lukashenko.

For the first years of Lukashenko’s rule, Belarus was able to allow good wages for workers and easy credit despite its poor natural resources and dire relations with the West, creating what became known as the "Lukanomika."

But it also created one of the biggest current account deficits in the world, which then triggered a collapse of the Belarussian ruble this year and the unravelling of Lukashenko’s economic model.

A recipient of Hero of Belarus, the country’s highest award, Prokopovich underwent heart surgery in April 2011. His permanent successor has yet to be named but deputy chief Yury Alymov will occupy the post in a temporary role.