Record high losses will not affect enterprises performance reports

April 22, 2016 19:09

According to the National Statistics Committee, the net loss of the Belarusian economy in January 2015 was BYR 42.9 trillion, which is 7.5% less than the net profit for the whole economy in 2014.

This financial result is due to foreign exchange rates differences on foreign currency loans taken earlier, which have arisen because of the national currency devaluation. Decree No 103 of February 27th, 2015 has enabled transferring losses up to December 31st, 2016, whereby the statistical results will look much better. Financial performance of companies will be distorted due to the voluntary right to write-off exchange rate differences. As a result, the situation with income tax payments to the budget might somewhat improve, and top managers will be able to get extra benefits in connection with a lucrative job. In February, the Russian rouble has somewhat strengthened, which will require an additional decree concerning the exchange rate differences after January 31st, 2015.