Worsening of financial statistics in the real sector

Category status:
April 22, 2016 17:55

By 1 May 2011 accounts payable amounted to Br 66.3 trillion, compared with 1 May 2010 they increased by 38.2%, while consumer prices grew by 18.1% during this period.

Between January and April 909 organizations were at a loss. Net losses of unprofitable organizations in January-April 2011 amounted to Br 1 trillion, or increased by 44.3% in January-April 2010.

As of 1 June 2011 stocks of finished products at industrial enterprises in Belarus amounted to Br 7578.6 billion, and increased by 51% from the beginning of the year.

Volume of stocks has been rising continuously since the beginning of the year: in May by 10.5%, by 2% in April, by 1.9% in March, by 7.9% in February and by 21.8% in January.

Comment

The real sector cannot stay away from the unfolding crisis. Further reduction in income, growth of loans interest rates, the need to pay back foreign currency loans, all these and other factors contribute to the increased debts and loss-making of enterprises.

Moreover, the government’s efforts to stabilize inflation by putting administrative constraints on prices will lead to even greater imbalances. Many of the industrial, energy companies used foreign currency loans within the framework of modernization programs. The impossibility of their service will rebound to the banks. In order to avoid bankruptcy the government subsidizes state-owned enterprises from the budget funds (which is currently difficult), as well as enhances overall redistributive processes.

All these measures are contrary to the requirements set by Russia and the IMF in their reform programmes.

Similar articles

Belarusian authorities step up pressure on opposition before street protests
October 02, 2017 12:20
Image: "Новы Час"

During searches of social and "green" activists and anarchists, law enforcement has seized computers, mobile phones and publications. The authorities have also exerted additional pressure on supporters of unauthorized street protests and independent lawyers, who represented defendants in the White Legion case. The security services have stepped up the persecution of opponents before the street protests announced by the opposition. Apparently, the Belarusian authorities aspire that participants in street protests would reduce in number and that the low interest of the population to socio-political agenda before the local election campaign would retain.

Recent trends