Agro-industrial complex will remain major recipient of state aid, however, in reduced amounts

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August 14, 2017 12:06

According to decree 280 of August 7th, 2017, some agro-industrial enterprises will receive instalments on payments to the budget for up to seven years, for a total amount over BYN 400 million, with no penalty for delay or interest charges. This decree is a continuation of the programme on financial recovery of agricultural enterprises. Over the past six years, the state support to rural enterprises has exceeded USD 8.4 billion. The practice of transferring problem debts of the agro-industrial complex to banks for servicing from the state budget is likely to continue, as well as merges of unprofitable enterprises into holdings in order to improve accountability, and forcibly attaching loss-making agro enterprises to profitable businesses. Employment in agriculture will continue to reduce. In 2017, the state support for rural areas will be over USD 800 million, which will exceed the amount of state aid to other economic sectors. However, in future, support for agro-industrial enterprises will reduce in order to meet Belarus’ commitments within the framework of the Unified Energy System and due to limited budgetary sources.

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