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

President ensures continuity of state administration with young middle-level personnel
October 02, 2017 12:08
Image: BRSM.BY

President Lukashenka continues to rotate staff and rejuvenate heads of departments and universities following new appointments in regional administrations. Apparently, new Information Minister Karliukevich could somewhat relax the state policy towards the independent media and introduce technological solutions for retaining control over Belarus’ information space. New rectors could strengthen the trend for soft Belarusization in the regions and tighten the disciplinary and ideological control over the student movement in the capital.

President Lukashenka has appointed new ministers of culture and information, the new rector of the Belarusian State University and heads of three universities, assistants in the Minsk and Vitebsk regions.

The new Information Minister Karliukevich is likely to avoid controversial initiatives similar to those former Minister Ananich was famous for, however, certainly within his capacities. Nevertheless, the appointment of Belarusian-speaking writer Karliukevich could be regarded as the state’s cautious attempt to relax environment in the media field and ensure the sovereignty of national media.

The Belarusian leadership has consolidated the trend for mild Belarusization by appointing a young historian and a ‘reasonable nationalist’, Duk as the rector at the Kuleshov State University in Mogilev. Meanwhile, while choosing the head of the Belarusian State University, the president apparently had in mind the strengthening of the ideological loyalty among the teaching staff and students at the main university in order to keep the youth movement at bay. Previously, Korol was the rector of the Kupala State University in Grodno, where he held purges among the disloyal teaching staff.

The trend for the renewal of mid-ranking executives and their rejuvenation has confirmed. The age of the Culture Minister and three new rectors varies from 39 to 44 years old.