MINSK, 19 October (BelTA) – The bankruptcy of an enterprise will be approached in a thoughtful and balanced manner. Belarusian First Deputy Economy Minister Alexander Zaborovsky made the statement during the roundtable session held in BelTA's press center on 19 October to discuss key points and the balance of interests in Belarus-IMF talks.
The official said: “We are not going to make any artificial steps. Bankrupting every enterprise that fails to meet some criteria is not the idea. Economic rationality and the justification of the measures being taken will be the guiding principles.”
The Belarusian First Deputy Economy Minister mentioned several guidelines for making decisions in favor of bankrupting an enterprise or not. First, it is necessary to shut down commercial entities, which ineffectiveness puts a damp on performance of their contract partners. “If a small or medium enterprise works for a company with profound financial problems, we are bound to see untimely payments, problems along the entire payment chain, and, as a result, financial troubles in healthy enterprises,” noted Alexander Zaborovsky.
Then, bankruptcy decisions must be economically justified. “We have well-developed legislation on bankruptcy. It specifies what enterprises are recognized as steadily insolvent and how the bankruptcy procedure is initiated,” pointed out the First Deputy Economy Minister.
“And the third guideline. If an enterprise cannot perform steadily and effectively, it means that some resources, labor, and capital are used ineffectively. Certainly, keeping the enterprise going will have long-term effects on the potential of economic growth,” he added.
According to the source, the government's economic policy is supposed to use labor and capital as best as possible for the sake of long-term growth. “We have to pursue this policy bearing in mind that social consequences need to be absorbed by the social security system and by economic growth,” concluded Alexander Zaborovsky.
