The government starts dealing with arrears
“Belneftehim” restricted supply of its subordinate enterprises to foreign enterprises-debtors. This decision was adopted at a meeting of the Board of the Group on 29 July 2011.
Reports say, Belarusian exporters’ receivables exceeded $ 4 billion, of which $ 2 billion accounted for arrears.
The main volume of foreign currency earnings, which stays unreasonably outside Belarus, is accountable for the Ministry of Industry enterprises and the concern “Belneftekhim”. All together they are responsible for about 70% of the Belarusian exports. The reasons behind the delayed return of foreign currency earnings are not only due to unattractive official exchange rate, but also to the possibility to make quick gains using financial institutions abroad. While struggling to increase the foreign currency earnings the authorities still adhere to the usual administrative methods. The intrigue is that unofficial repost say, the State Control Committee, the main oversight body of the country, informally does not support the current economic policy. SCC experts were both against the unwinding of extensive loans and income growth at the end of 2010, as well as against the current policy of multiple exchange rates. Without full and unconditional support of the SCC, any repressive attempts would be ineffective.
Accordingly, prognosis for the future is that the number of corruption schemes will increase, there will be little progress on the return of currency earnings (by large state-owned enterprises), and continuation of fights behind the scenes between different power groups for a way out of the crisis in the country.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.