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A Dog in the Manger: Without Unloading Warehouses the Government Keep Businessmen Away From Doing It

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A Dog in the Manger: Without Unloading Warehouses the Government Keep Businessmen Away From Doing It

Why private entrepreneurs are not allowed to public warehouses and discounts not going to come?

The crisis has still not provided for easing of warehouses. Although the production output had been significantly reduced. For example, stocks of finished goods of Minsk Tractor Plant are really enormous. MTZ is not the only enterprise which experience problems with sales, Zautra Tvaie Krainy writes.

According to Belstat, as of January 1, 2016 domestic stock reserves equaled to Br33.5 trillion. In a year they increased by Br0.8 trillion and made 68.7% of average monthly production output.

How is it possible to sell it?

Kruk: Discounts are needed

- I think that the only reasonable approach is to make discounts, even if they exceed the cost price. It will make the way for floating funds: Dzmitry Kruk, research worker of BEROC, says. - Prescriptive measures can't resolve the situation.

The expert notes the problem with stock reserves turned up in 2013-2014.

- This is the heritage we should deal with now, the analyst says.

According to the economist, in the last year enterprises have significantly reduced the production output and stock reserves do not increase as fast as it used to be earlier.

However, the problem is still urgent. Besides, production manufactured several years ago could lose marketable state and functionality.

- No one knows whether same tractors are marketable, Dzmitry Kruk says.

Marhelau: Let businessmen run it!

Meanwhile, representatives of business have repeatedly tried to help authorities in unloading of warehouses. But they faced the wall.

— As for MTZ and MAZ, the business has been offering for many years: let us help you. But the managing staff says: We have our sales policy, Viktar Marhelau, Co-Chairman of the Republican Confederation of Entrepreneurship, tells.

In his words, several years ago Belarusian businessmen brought to Minsk Ukrainian colleagues who were ready to acquire 50 tractors of MTZ. It was more profitable and cheaper. Businessmen agreed to register and deliver production on their own. But the plant gave a refusal and asked to buy Belarusian production in Ukraine.

–Today, despite stocks of finished products, you will not buy a tractor for export. It will simply not be sold, the expert stresses.

The same situation is with main spares. Although, according to businessmen, there is a place for business.

He reminds that earlier many private entrepreneurs took spares, bartered something, and found buyers.

–It is clear the plant will not act this way. Let businessmen run it! But alas! Their policy does not provide the place for small and accidental businessmen, the businessman celebrates.

There are different reasons for stock reserves. For example, MTZ lost positions because last year Russia bought only 4.5 thousand instead of 11 thousand tractors. Minsk Automobile Plant, according to the expert, faces even more severe problems. MAZ is being displaced by KamAZ.

- Different sources inform that total accounts payable of MAZ reached Br50 trillion. Today sources sound the figure of Br20-25 trillion. It is one billion dollar! Is there production for one billion? Viktar Marhelau wonders.

In his words, the Minsk Motor Plant suffers the same problems, as well as any other state enterprise.

- Now the "surgical" attack is needed. Earlier, the government had to get used to the situation. There was no need to produce tractors and keep people. What is going on now? To print money to help MAZ in settlement of debts and destroy the economy? the businessman says.

According to the expert, at the latest session of confederation of entrepreneurs and manufactures representatives of the Economy Ministry stated that more than 500 enterprises with 1-1.5 million people there were on the edge of the bankruptcy. To bring their state in balance, according to the Ministry, $7 billion are needed.

- And it is all without reconstruction and modernization. What a deal! Stock reserves of the MTZ are just the top of the iceberg! Viktar Marhelau notes.

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