Session to discuss new instruments of restructuring debts in Belarusian economy

It is inadmissible to solve the problems of enterprises and banks at the expense of the budget, Belarus President Aleksandr Lukashenko said at the session held on 19 December to discuss new instruments of restructuring debts in the economy.

“It is inadmissible to solve the problems of enterprises and banks at the expense of the budget. We need a systematic approach to deal with this issue. More active involvement of banks in these processes is needed. However, money borrowers should be the most active participants. We need efficient measures to improve the financial situation at enterprises and in branches of the economy,” the head of state said.

Aleksandr Lukashenko remarked that the session will focus on the work with troubled debts of enterprises and the real production sector of the economy. The size of loan debts at certain enterprises is high, and its does not allow them to work efficiently and develop. This is the result of certain failures in the past, mistakes in business planning, and the expensiveness of money in the banking system.

According to the President, a dozen of resolutions worth $1.8 billion were passed to improve the situation at enterprises and in branches of the economy in 2015 and 2016. Their debts were restructured, the terms of debt servicing were changed, budget loans were issued. “Back then the government promised to support our enterprises for the last time. From the point of view of the government, enterprises needed a certain stimulus for efficient work and payment of debts,” the head of state recalled. “Now it is time to pay back. Instead, we have a new wave of restructuring proposals.”

Aleksandr Lukashenko emphasized that the submitted proposals do not envisage the responsibility of money borrowers. “There was a separate decision of the President concerning the responsibility of those who took loans,” the Belarusian leader said.

In this context, he criticized the Belarus President Administration and the State Control Committee for the absence of timely information on these issues, for not making corresponding personnel proposals, and for relying on the decisions of the government only. “You are lagging behind,” the head of state said.

“The government and the National Bank have prepared a number of innovative proposals. In my opinion, these proposals are innovative only in theory,” he added.

Aleksandr Lukashenko remarked that he wants answers to a number of questions. What has to be done to reduce troubled debts? What time will it take to repay the debts of enterprises using the proposals of the government and the National Bank? Will the innovations benefit the real production sector, the budget and banks?

“I want you to answer the questions about the efficiency of submitted proposals,” the President said.