“Belshina” CEO: We Lack Long-Term Easy Money

• 4.11.2016, 15:25

Lack of working capital does not allow the enterprise to develop new markets.

CEO of “Belshina” Aliaksei Yakauleu has stated that at the economic forum in Minsk, tut.by writes.

According to him, “Belshina” is holding an active modernization, exploring the new markets, the company works with a profit.

“Lack of the working capital remains one of the key obstacles for the industrial enterprises of the real economy sector. The main problem is securing access to the long-term easy money,” — Yakauleu has said.

“Coming out to the market when you have no working capital claiming you will guarantee not only the high quality, but fulfill all the orders in time remains a very high risk which will most likely lead to fiasco,” — he has clarified.

As for reforms, according to the CEO of “Belshina” tire factory, they are holding transformations “in practice, not in theory”. Alongside with that, Yakauleu has said, “the current transfer to the new economic reality seems not a good time for harsh reforms. A more stable situation is needed,” — the top-manager believes.

Anticipating the question regarding possible privatization of the plant, Aliaksei Yakauleu has noted that "enterprises being public or private – it’s the choice of a particular country's government, even historical predetermination". According to him, "the effectiveness remains equal in both cases," it does not depend too much on the form of ownership. He has made it clear that some state-owned enterprises effectively work now.

“Reforming state-owned enterprises requires a deep analysis, not the one based on general approaches,” — CEO of “Belshina” has said, clarifying that “local economic mainstays create a certain level of social stability in their region”. In particular, 10 thousand people work at “Belshina”, which is quite significant for the city of Babruisk with 200 thousand residents.