Belarus govt approves Belshina’s 2021-2025 development strategy, allows partial debt restructuring

<p> MINSK, Aug 4 - PrimePress. The government of Belarus has approved the development strategy of Belshina (Bobruisk, Mogilev Oblast) to reach the maximum production capacity and reduce the debt burden in 2021-2025. At the same time, measures of state support to Belshina do not include financial subsidies, but allow for partial debt restructuring and preferential treatment of debt repayment. This was stated by Prime Minister of Belarus Roman Golovchenko during his visit to Belshina on August 4, the government’s press service said. </p> <p>   </p> <p> According to Golovchenko, “one of the world's top consulting companies, which are competent in this branch of the manufacturing sector and in this business,” contributed to drafting Belshina’s development strategy in Oct 2020. </p> <p>   </p> <p> “The strategy has been approved as a whole. It will allow making plans for the next five years by implementing a number of managerial decisions that will penetrate the entire sphere from production planning to marketing and sales. This is why we think it is just the solution that, coupled with other state support measures, will help resolve the company's key problem – the reduction of the debt burden and the achievement of maximum output capacity after the implementation of investment projects,” said Golovchenko. </p> <p>   </p> <p> The premier said: “We are not going to provide state support to Belshina in the form of any financial infusions. We've agreed that as part of the work to implement the strategy we will consider partial restructuring of the debts and the enabling of more comfortable conditions for repaying the debts. But it will be strictly tied to the implementation of the measures stipulated by the strategy. Belshina’s debts are rather large, both to the state budget and to commercial banks. We will work on a comprehensive solution for reducing the loan burden one way or another. We will decide how the enterprise can invest in floating assets and the completion of investment projects. All of it needs to be done so that Belshina could pay off the debts.” </p> <p>   </p> <p> Golovchenko emphasized that “Belshina needs to raise earnings by Br150-200 million every year. It will allow the company to calmly implement all the plans.” </p> <p>   </p> <p> As previously reported, Belshina has been implementing several investment projects in 2020-2025 aimed, in particular, at creating the production of large-size radial tyres of various diameters. </p> <p>   </p> <p> According to corporate statistics, in 2020 Belshina's revenues fell by 1.2% to Br677.96 million ($270.772 million; $1/Br2.5038), net loss increased 4.88 times to Br191.65 million ($76.543 million). Long-term credit liabilities amounted to Br680 million ($271.587 million) in December 2020. </p> <p>   </p> <p> The state-owned tyre manufacturer OAO Belshina is one of Europe’s largest producers of tyres. It manufactures over 300 models of tyres for all kinds of vehicles. The company also makes non-standard equipment and spare parts. Belshina products are exported to 60 countries. End </p>

2021-08-05

Primepress