Enterprises in poor financial health may be refused state support

April 22, 2016 19:01

The government is elaborating a new state support concept, which envisages that temporary state support will not be provided to enterprises experiencing financial difficulties.

More than 15% of large and medium-sized enterprises in Belarus are unprofitable. The new rules will lead to their insolvency and stable loss-making, the number of workers employed part-time will increase, some enterprises might become bankrupt, and state expenses on re-compensation of interest rates for industrial enterprises will increase. Due to the peculiarities of Belarus’ privatisation process, most of the bankrupt enterprises will cease to exist and will not be bought out by local or foreign investors.