Bankruptcy cases to increase by 30%-50% in 2016 in Belarus
According to the Supreme Court of Belarus, as of March 1st, 2016 the court had 2564 lawsuits on economic insolvency (bankruptcy), which was a 38% increase from last year. In late January 2016, every third Belarusian company was unprofitable. As the state reduces its support, even more enterprises are expected to file for bankruptcy, both state and private. In addition, that would lead to higher unemployment. Arrears on taxes and fees to the Social Security Fund will increase, as well as the volume of collateral and real estate sold by banks. Overall, in 2016, the number of industrial enterprises, trade and construction companies that will file for rehabilitation or bankruptcy procedure may increase by 30-50%.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.