Debts of the Government of the Republic of Belarus negatively affect its economy

The public sector debt obligations over the years have been negative for the economy level of Belarus.

And this suggests that the amount of debt of state business entities

reference

VDS — gross value added, i.e. The fact that a total of employees in the cost estimate are made at enterprises.

In 2018, the total debt of the state amounted to 110% of the DVS. Excessive loores of the public sector indicates that the economy in the country is in a vulnerable position.

How does this affect the economic status of the country?

· Low rating in international credit relations;

· Increased price and a small borrowing limit on external arena;

· Insufficient attractiveness for overseas investors.

What does it lead to

· Growth of the price of credit contracts in the market for enterprises that have no loans and there is high efficiency in activities;

· In the banking sphere risks increase, an invalid level of financial intermediary operations appears, the ability to respond to obligations to foreign creditors decreases.

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April 1, 2020

Output

Supporting enterprises in the provision of credit resources for organizations that are not able to produce a sufficient amount of goods or services worsens the economic situation in the state. There is a rapid growth of credit load * of the real sector, and this, in turn, increases the risks of the financial situation of the nation’s economy.

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The real sector is all branches with the exception of organizations that are engaged in financial services.

It is worth adding that the low attractiveness of Belarus enterprises also affects the lack of development

According to experts, intangible resources and connections of the firm would improve the performance and performance indicators.