Belarusian state to continue to support loss-making industries

April 25, 2016 21:36

The state will increase its share in the authorized funds of 97 enterprises in the amount of the state support provided in 2015 (BYR 1.9 trillion). Funds have been allocated to subsidize interest rates on previously issued loans. Most companies, which had received the state support, were unprofitable, they could not service loans independently. Since in 2016 they have remained loss-making, the state is likely to extend its aid. For instance, the state may provide funds to cover their energy costs, assume liability for some of their loans (add them to the state debt) and impose state control over operations. Some agricultural enterprises may be subject to restructuring. Cement and wood processing industries are unlikely to become profitable even in the mid-term, however, the state will continue supporting enterprises in these fields as they perform a social function of preserving employment rates.