Officials believe the decline is related to the fact that compensatory payments to cushion the effects of the rises have not been implemented. Also, Belarusian banknote denominations were reduced to their face values last week, about the same time that the commodity price reductions occurred. Although the Belarusian ruble did not drop in value against the Russian ruble or the dollar, officials say the reduction may have caused some confusion in the marketplace. The money will be used to provide credits and technical assistance to new private companies, especially small enterprises. The grain harvest in the Baltic States is expected to drop from 5.77 million tons in 1993 to 3.2 million tons in 1994.
Officials blame a reduction in land planted and a severe drought in the area.
Lithuania is expected to harvest 2 million tons this year, down from 2.7 million in 1993. Estonia harvested 700,000 tons in 1993 but is expected to bring in only 400,000 tons in 1994. Latvia is expected to harvest only a third of last year's 2.4 million tons, or approximately 800,000 tons.