Belarusian industry owes lenders over $32 billion

About 75% of the Belarusian industry consists of state-owned enterprises. Over the period of many years of modernization, the domestic giants have accumulated huge debts, says

As of July 1, 2019, the total debt of large and medium-sized industrial enterprises amounted to 63.463 billion BYN (for comparison, revenues of the consolidated budget of Belarus for 2018 amounted to 32 billion rubles).

Total debts are understood by the authorities as accounts payable (debt for goods or services, which arises when there is no timely payment) and debt on loans and borrowings. Large companies include companies with more than 250 employees, while medium-sized companies employ from 100 to 250 people.

Real sector with real problems

The total debt of the Belarusian industry is half (50.3%) of the total debt of the real sector. At the same time, the share of industry in the added value of the economy is much lower.

Hopeless non-payers

Industrial loans and borrowings are 42.872 billion BYN. The main non-payers of loans and credits are the food industry (9.430 billion BYN), wood processing and pulp and paper industry (709.2 million BYN), and mechanical engineering (402.9 million BYN). Among the largest are the Svetlahorsk Paper Mill and the Hero of Labor factory in Dobrush, Minsk Tractor Plant (MTZ).

Long-term debt

Thus, industry owes lenders 41.978 billion BYN. A sum like this cannot be paid in a short period of time. Therefore, industry is going to be a chronic debtor of the budget, other sectors of the economy and the outside world for many years to come.

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