Belarus to preserve redistribution of budgetary resources in favour of inefficient enterprises

April 22, 2016 19:14

According to the Council of Ministers decision No 433 of May 22nd, 2015, in 2014 state support in 2014 totalled BYR 2.7 trillion and by this amount the founding capital in 249 joint-stock companies would increase in 2015. In 2014, loss-making enterprises received the most state support. In 2015, the burden on financially healthy enterprises would increase and the majority of modernised state-owned enterprises would remain unprofitable and would require support from the state. Modernization of enterprises will continue mainly at the cost of foreign loans and private sector investment in new facilities in Belarus will be minimal. The main obstacle for creating new private enterprises in Belarus is poor investment climate and high administrative risks for investros, which is unlikely to change in the near future.