30 March 2024, Saturday, 2:28
Support
the website
Sim Sim,
Charter 97!
Categories

Enterprises’ Arrears On Loans Exceed Their Revenue Four Times

4
Enterprises’ Arrears On Loans Exceed Their Revenue Four Times
PHOTO: BYMEDIA

Belarusian enterprises’ debts on foreign currency loans amounted to 12.1 billion dollars by April 1.

Financial liabilities of business entities to the banks are four times higher than their revenues. According to BelaPAN, a representative of the National Bank management said that during a meeting with Belarusian economists last week.

According to the National Bank, on March 1, the ratio of debt load of enterprises (the ratio of debt on bank loans to the average monthly earnings) amounted to 386.1%. The calculations indicate that this figure has been constantly increasing since January 2015.

During the meeting with National Bank representatives economists noted that high debt load of the enterprises is the main factor that constrains lending activity of banks and lead to the increase in the banks' troubled assets.

According to the National Bank, the debt of clients on ruble bank loans (and other operations) decreased by 1.4 trillion to 162.1 trillion rubles in the first quarter by April 1. At the same time the debt for foreign currency loans remained unchanged (12.1 billion USD by April 1) since the beginning of the year.

During the meeting with representatives of the National Bank economists noted that many enterprises-borrowers are in a difficult financial situation today. March data of monitoring of the companies, which were given at the meeting, showed that almost 50% of the companies had reduction in the product demand and only about 10% of enterprises reported growth in demand for their products.

Write your comment 4

Follow Charter97.org social media accounts