IMF: Belarus spends up to GDP's 2.2% annually to support loss-making enterprises

Belarus spends up to 2.2% of the country's GDP to support loss-making enterprises, according to the data revealed to reporters by International Monetary Fund's Belarus Mission head Peter Dolman.

IMF experts reckon the state enterprises sector should be reformed immediately. However, many state-run enterprises count on support from the state, which slows down the country's economic growth.

"The overbalanced assistance to state-run enterprises leads to debt growth. The loans issued to state enterprises later become unserviceable. As a result, the state is forced to support banks, " Peter Dolman said. "The practice of covering the losses of state enterprises repeats year after year and amounts up to 2.2% of GDP. Belarusian taxpayers have the right to receive an answer to the question how this money is being used."

From IMF's perspective, it is very important that the government could ensure assistance to Belarusians who can be patient in the 'transition' period of reforms. "This is a key priority for IMF. The measures need to include temporary doles for unemployed and money for re-training, and other steps at the labor market," Peter Dolman added.

An IMF mission of experts worked in Belarus for two weeks in the framework of annual consultations on Article IV. Consultations are helpd with all IMF member states and inludes among other things discussions with officials, representatives of the private sector and non-governmental organizations.