Financial health of Belarusian enterprises continues to deteriorate

Belarusian economy in January-February 2015 made a net profit of BYR 2.8 trillion, which is 45% less compared with 2014. In January 2015, economic losses were record low – BYR 42.9 trillion, however the situation somewhat improved next month thanks to tax loss carryforwards as of January 2015. This measure cannot entirely prevent deterioration financial health of enterprises in 2015. Poor financial health, in turn, may lead to a reduction in investment activity, except those subsidised from the state budget, and further lay-offs. Sale of state-owned enterprises or their IPOs on international markets are unlikely due to a significant distortion of their financial picture. Most industries are unprofitable, which may increase the number of bankruptcies among state enterprises in 2015.