Unprofitable Construction Companies in Abundance :: Charter'97 :: News

In 2001 the number of unprofitable companies in the construction industry of Belarus increased by 1,7 times, including in the construction business – by more than twice. Their percentage in the construction business reached 24,2%, in the production of construction materials – 47,4%, generally in the industry – 29%. The sum of the losses amounted to 24bln rubles, 87% of which fall on the construction materials production. Meantime, the number of profitable companies in construction fell by 30%, in construction materials production – by 20%.

The industry’s debts are skyrocketing. 25-30% of clients fail to pay for the amount of work accomplished every month. By December 2001 the overall clients’ indebtedness before the Ministry’s organizations amounted to 84,1bln rubles, while generally in the industry – to 371bln, which is 20% of the annual volume of works. This is one of the reasons of profitability in construction sphere in the 11 months of the year 2001 – 6,3% or 1,8 times more than during the analogous period in 2000. The level of profitability was influenced also by the execution of Alexander Lukashenko’s order to reduce by 10% the cost of the living space, build upon the state subsidies.