The Government Delays Reforms and Follows Into Steps of the USSR, Experts Say

Arrears on loans have increased by half.

As of July 1, 2016 business loan arrears in Belarus (excluding micro-organizations and small independent organizations) amounted to Br22 trillion. In relation to this January 1, it increased by 48.5% in June - by 8%, BelaPAN informs referring to Belstat.

In general, as of July 1, 2016 loan arrears amounted to Br612.6 trillion - 7.9% more than on January 1, 2016, and 1.1% more compared to June 1.

Since the beginning of the year the overdue accounts payable have increased by 19.9% and equaled to Br69.5 trillion, since June 1, 2016 - by 2.3%.

In general, as of July 1, 2016 overdue accounts payable amounted to Br378.6 trillion or 7.2% more than on January 1, 2016, and 0.03% more compared to June 1.

External overdue accounts payable has increased by 7.6% since the beginning of the year and on July 1, 2016 it reached Br12.8 trillion. During June 2016 it decreased by 1.4%. In general, foreign liabilities increased by 7.1% (to Br95.7 trillion), in June it decreased by 2.3%.

Since the beginning of the year overdue accounts receivable has increased by 20.8% and amounted to Br73 trillion, since June 1 it decreased by 0.4%.

As of July 1 accounts receivable made up Br295.85 trillion or 9.6% more that in January 1, 2016 or 0.2% more compared to June 1, 2016.

External overdue receivables increased by 9.6% since the beginning of this year and amounted to 11.5 trillion. Since June 1 it increased by 0.9%. In general, foreign receivables increased by 4.5% to Br72.7 trillion from the beginning of the year, in June - by 1.5%.

Economists believe the growth of overdue debts relates to the fact that businesses can not cover preferential loans. "The government tries to delay reforms and follows in the footsteps of the Soviet Union, which tried to save socialism. Authorities today have a tend to fill up troubled companies with money to avoid mass strikes rather than carrying out market reforms", the head of the Scientific Research Mises Center Yaraslau Ramanchuk previously noted.

"In a year, companies most likely will accumulate new arrears. Why? Their problems with the financial situation is not the result of high interest rates on loans, but relate to the fact that they produce uncompetitive goods and deaden financial resources", economist Siarhei Chaly stressed.