Belarusian Industry Plunged Into the Darkness of Delays

Among the types of activities in terms of overdue volume, only agriculture is comparable.

In 2020, officials are busy refinancing the debts of industrial enterprises. However, billions of toxic debts still remain on the accounts, the website banki24.by writes.

The industry covers almost half of the overdue debts of all large and medium-sized enterprises in Belarus. As of August 1, the total "junk" debt amounted to BYN 10.154 billion, and the liabilities of one industry - BYN 4.766 billion.

Among the types of activities in terms of overdue volume, only agriculture is comparable. Even after the application of numerous measures of state support, the farmers have 2.915 billion BYN of "junk" obligations.

Within the industry, the food industry collected the most problem debts (1.145 billion BYN). Also, metallurgists (567.7 million BYN), manufacturers of non-metallic mineral products (561 million BYN), transport manufacturers (533.4 million BYN), and machine builders (514.6 million BYN) also had large overdue obligations.

Total liabilities are divided into creditor indebtedness and debts on loans and borrowings. By August 1, overdue credits in industry amounted to 3.327 billion BYN, and delinquencies on loans and borrowings were 1.439 billion BYN.

The food industry (751.7 million BYN) and metallurgists (502.4 million BYN) are the leaders in terms of the volume of overdue credits in the industry. At the same time, 23.9% of accounts payable are overdue for metallurgists, and 18.4% for food workers.

The main part of overdue creditor indebtedness is payments within Belarus (2.473 billion BYN). All the same industries occupy the first places: food processing (668.5 million BYN), transport manufacturers (290.1 million BYN), and metallurgists (260.2 million BYN).

Overdue loans and borrowings are concentrated in the following industries - food processing (392.8 million BYN), manufacturers of non-metallic products (271.6 million BYN), mechanical engineering (181.5 million BYN).

They owe a lot to the industrial enterprises themselves. This overdue debt is called a receivable. As of August 1, Belarusian industrialists were not paid for supplies worth BYN 4.391 billion. The share of bad liabilities in accounts receivable was 19.1% (almost every fifth ruble).

The main non-payments are again accumulated within the country. As of August 1, the internal overdue credit line amounted to BYN 3.720 billion, and its share in all internal accounts receivable was 22.5%.

Massive non-payments are bad for industry profits. For 7 months, the net profit in this area fell 2.8 times to BYN 1.729 billion. But the net losses of unprofitable companies, on the contrary, jumped 6.1 times to BYN 1.674 billion. The share of unprofitable organizations in the industry increased from 18.3% in 2019 to 22.5% in 2020.