Some woodworking modernization loans will not be repaid
Six of nine woodworking enterprises under the operational management of the Development Bank will be unable to repay loans they have received for modernisation by 2030. Given the maturity terms of the loans and preferential interest rates, this means that these enterprises are financially insolvent. As are result, employment in the industry will reduce, state support for the industry will increase in order to stabilise the industry’s financial situation, and some enterprises may be subjected to readjustment procedure. All remaining non-performing loans granted for modernization of the woodworking industry, will be purchased from banks and transferred to the Development Bank for servicing in order to keep them afloat and preserve employment.
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.