BORISOV, 8 July (BelTA) – The government is considering the available options in order to support OAO Borisov Plant of Automotive and Tractor Electrical Equipment (OAO BATE), the managing company of the holding company Automotive Components, BelTA learned from Prime Minister of Belarus Roman Golovchenko on 8 July. The prime minister visited the company that day.
Roman Golovchenko said: “It is necessary to take a close look at the prospects, think about what to do later on, think about whether this new portion of support suggested by the Industry Ministry will give an impulse in the future. Or whether the money will suffice only to get a gulp of air before diving deep again. We definitely don't want that to happen.”
The head of government pointed out that state support for the company was already authorized in 2015. The pandemic made the state of affairs at BATE even more complicated. This is why the prime minister decided to visit the company in person and discuss problems with major buyers of automobile components.
Roman Golovchenko explained: “The government is the owner. This is why we cannot stay away and only rely on purely theoretical approaches of the portfolio investor. We understand that the company employs over 1,200 people, this is why we should help find a solution instead of simply inspecting the company. The government has an arsenal of tools at its disposal.”
In the current situation BATE may be granted a respite on loan payments, maturity dates can be postponed, and other measures can be taken. A set of options will be worked out for consideration of the head of state.
“Certainly, there are always elements of surprise that we cannot foresee. Various situations may emerge, including protectionism on the part of consumers outside the Republic of Belarus. It is difficult to insure oneself against them but we've tried to discuss all the other factors we can influence,” Roman Golovchenko explained.
Financial performance is at the heart of the company's troubles. The enterprise was built in order to supply a lot of products primarily to assembly lines in Russia. The manufacturing process is streamlined with this in mind. No radical measures to optimize the production floor have been taken. In order to sell a lot now, it is necessary to invest in the quality of products, the head of government pointed out.
In his words, OAO BATE has a strategy but it is necessary to once again verify financial flows, check whether they will allow servicing the current loans. “Nobody says the government will write off debts or forgive things. The head of state's stance is clear: if you borrow money, then you have to earn money and pay it back. We can just offer more relaxed terms for the payback,” the prime minister added.
