The situation with the bankruptcies of companies are changing towards a more objective picture. The state has become less support unprofitable state-owned enterprises as a result, the number of bankruptcies among them is steadily growing, while the proportion of private owners.
If you compare with the fact that Belarus was 10 years ago, the situation with the bankruptcy of Belarusian companies is gradually changing towards a more objective reality.
If in 2009 in the courts on average was 1350 cases of economic insolvency, of which the share of state companies accounted for only about 6% today (on November 1, 2019) in the manufacture of vessels is 2309 bankruptcy cases, and the share of public sector increased to 9%. As a result of such reallocation, the number of SOEs in a state of bankruptcy has increased 2.5 times.
The peak of bankruptcies in Belarus occurred in the year 2016, after the recent economic crisis. This year in the production of ships was always more than 3 thousand cases of economic insolvency, the share of public sector was only 3%, i.e. two times less than in 2019, although in absolute numbers the numbers were the same. This suggests that in a situation of crisis the government by all means, including through private business, trying to support the public sector, whose situation was much worse than the privateers. Suffice it to recall that as a result of the devaluation of the Russian ruble, the export of some enterprises fell at an incredible pace.
In 2016 the situation with bankruptcies in Belarus has changed even more than in the last 10 years, especially state-owned enterprises. Bitter experience of the ongoing crises, the President himself initiated a serious decline in state support for unprofitable enterprises. In the end, in just 3 years, the share of public sector in Affairs about bankruptcy has tripled.
According to the Supreme court, as of November 1, the economic courts listed 213 cases of economic insolvency (bankruptcy) of organizations relevant to the economy and social sphere of the country, which include state organizations, organizations having the share of state ownership in the statutory Fund, township enterprises and related organizations, budget forming, the backbone of the organization. For comparison, in 2016 there were only 85.
The number of bankruptcies in the agricultural sector, which is also a consequence of reductions in state support. Most farmers today bankrupt in the Grodno region (30) while in the Gomel region there is in General no, but in Minsk only bankrupt agricultural enterprises.
Given the trend of further reduction of state support of loss-making enterprises, it can be expected that the share of public sector in the total mass of bankruptcies will continue to grow regardless of the General state of Affairs in the Belarusian economy.
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