MINSK, 17 August (BelTA) – A law on resolving insolvency is
supposed to be passed by the end of 2021 and is supposed to come into
force on 1 January 2022. Belarus President Aleksandr Lukashenko
specified these deadlines during a government conference held on 17
August, BelTA has learned.
The bill was discussed in detail taking into account opinions of the sides and will be polished before it is brought into the parliament. Aleksandr Lukashenko noted that the final document needs to be transparent and should not complicate things.
Economy Minister Aleksandr Chervyakov told reporters that the bill is rather complicated since it affects interests of specific worker collectives and enterprises. “Matters of insolvency are quite important and very sensitive for workers, territories, and so on,” the official noted. “This is why the head of state pointed out that the law should be enhanced to allow municipal government agencies and government bodies to make rehabilitation decisions.”
The economy minister stressed that preventing enterprises from transitioning to court proceedings and bankruptcy is the main goal. “It is necessary to focus on pretrial rehabilitation, on taking measures to prevent enterprises from resorting to the bankruptcy procedure. The bill needs to be polished within a short period of time taking into account the tasks set by the head of state – to enhance the role of municipal authorities,” Aleksandr Chervyakov stated.
Aleksandr Chervyakov explained that the government agencies that run specific enterprises will have to do a lot of work while financial rehabilitation commissions will have to work at the local level. It is one of the approaches. Stepping up the monitoring of the financial state of enterprises is another approach. “We should prevent situations where an enterprise is already insolvent. This is why the head of state pointed out it is necessary to be proactive,” the economy minister stressed.
Aleksandr Chervyakov specified that the draft decree covers not only the public sector. Private enterprises will be able to use the procedures the decree offers, too. “If aid is needed, then certainly a private owner, an enterprise will be able to contact the commission in order to get assistance with resolving the existing problems. We don’t differentiate between private and state-run companies. It is necessary to work towards all the enterprises having a financial state that allows them to work effectively,” he assured.
Aleksandr Chervyakov explained that the choice of financial rehabilitation tools and mechanisms will vary since enterprises get stuck in difficult situations due to different reasons. “Some need help with taxes. Some need help with the loan burden and some need personnel issues resolved. Each situation needs its own financial rehabilitation plan,” he said.
Aleksandr Chervyakov remarked that the government is more concerned about the private sector, including medium-sized enterprises. He mentioned that about 1,600 enterprises are going through rehabilitation procedures, including only about 150 state-run enterprises.
Once again the economy minister stressed that the Economy Ministry and the government as a whole are working out measures to negate Western sanctions against a number of Belarusian organizations and enterprises and negate the effect of the coronavirus pandemic and negative factors on foreign markets. “The sanctions and the pandemic are still having an effect. They certainly are. But minimizing their effect is the key task outlined by the head of state. We are working on it. The government is working hard to prevent people from feeling the effect of the sanctions and the pandemic,” Aleksandr Chervyakov said.
BelTA reported earlier that the bill on resolving insolvency was discussed at the level of the head of state about one year ago. Back then the government was instructed to change the ideology of this document: to move from bankruptcy to the rehabilitation of struggling enterprises. The concept of the bill was also changed, with the focus shifting to the protection of enterprises from shocks caused by unfavorable external factors. “I’d like to note that it is primarily up to worker collectives and heads of these worker collectives to overcome these shock barriers,” Aleksandr Lukashenko said during the government conference.
“Besides, it’s been stipulated that we will move away from litigation support at all stages of economic insolvency cases. I have given an instruction not to overload courts with irrelevant issues because courts are already swamped with too many economic problems and disputable matters related to the economy. In the past those issues were handled by municipal authorities,” the head of state said. “The coordinating role in financial restructuring will be ultimately performed by the government, industry-specific government agencies, and municipal authorities.”
The president did not rule out the possibility that courts will have to deal with some of the problems. Aleksandr Lukashenko added that courts will be the ultimate authority then.
The bill was discussed in detail taking into account opinions of the sides and will be polished before it is brought into the parliament. Aleksandr Lukashenko noted that the final document needs to be transparent and should not complicate things.
Economy Minister Aleksandr Chervyakov told reporters that the bill is rather complicated since it affects interests of specific worker collectives and enterprises. “Matters of insolvency are quite important and very sensitive for workers, territories, and so on,” the official noted. “This is why the head of state pointed out that the law should be enhanced to allow municipal government agencies and government bodies to make rehabilitation decisions.”
The economy minister stressed that preventing enterprises from transitioning to court proceedings and bankruptcy is the main goal. “It is necessary to focus on pretrial rehabilitation, on taking measures to prevent enterprises from resorting to the bankruptcy procedure. The bill needs to be polished within a short period of time taking into account the tasks set by the head of state – to enhance the role of municipal authorities,” Aleksandr Chervyakov stated.
Aleksandr Chervyakov explained that the government agencies that run specific enterprises will have to do a lot of work while financial rehabilitation commissions will have to work at the local level. It is one of the approaches. Stepping up the monitoring of the financial state of enterprises is another approach. “We should prevent situations where an enterprise is already insolvent. This is why the head of state pointed out it is necessary to be proactive,” the economy minister stressed.
Aleksandr Chervyakov specified that the draft decree covers not only the public sector. Private enterprises will be able to use the procedures the decree offers, too. “If aid is needed, then certainly a private owner, an enterprise will be able to contact the commission in order to get assistance with resolving the existing problems. We don’t differentiate between private and state-run companies. It is necessary to work towards all the enterprises having a financial state that allows them to work effectively,” he assured.
Aleksandr Chervyakov explained that the choice of financial rehabilitation tools and mechanisms will vary since enterprises get stuck in difficult situations due to different reasons. “Some need help with taxes. Some need help with the loan burden and some need personnel issues resolved. Each situation needs its own financial rehabilitation plan,” he said.
Aleksandr Chervyakov remarked that the government is more concerned about the private sector, including medium-sized enterprises. He mentioned that about 1,600 enterprises are going through rehabilitation procedures, including only about 150 state-run enterprises.
Once again the economy minister stressed that the Economy Ministry and the government as a whole are working out measures to negate Western sanctions against a number of Belarusian organizations and enterprises and negate the effect of the coronavirus pandemic and negative factors on foreign markets. “The sanctions and the pandemic are still having an effect. They certainly are. But minimizing their effect is the key task outlined by the head of state. We are working on it. The government is working hard to prevent people from feeling the effect of the sanctions and the pandemic,” Aleksandr Chervyakov said.
BelTA reported earlier that the bill on resolving insolvency was discussed at the level of the head of state about one year ago. Back then the government was instructed to change the ideology of this document: to move from bankruptcy to the rehabilitation of struggling enterprises. The concept of the bill was also changed, with the focus shifting to the protection of enterprises from shocks caused by unfavorable external factors. “I’d like to note that it is primarily up to worker collectives and heads of these worker collectives to overcome these shock barriers,” Aleksandr Lukashenko said during the government conference.
“Besides, it’s been stipulated that we will move away from litigation support at all stages of economic insolvency cases. I have given an instruction not to overload courts with irrelevant issues because courts are already swamped with too many economic problems and disputable matters related to the economy. In the past those issues were handled by municipal authorities,” the head of state said. “The coordinating role in financial restructuring will be ultimately performed by the government, industry-specific government agencies, and municipal authorities.”
The president did not rule out the possibility that courts will have to deal with some of the problems. Aleksandr Lukashenko added that courts will be the ultimate authority then.
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