The city-forming enterprise "Vitebchanka" will receive state support

March 18, Vitebsk / Diana Kurilo - BELTA /. The Vitebsk Regional Council has exempted the city-forming enterprise "Vitebchanka" from transferring part of the funds from leasing property owned by the region to the regional budget. The decision was made today at a session of the Regional Council of Deputies, according to a BELTA correspondent. The preferences in the amount of Br180 million are granted for a period of 1 year. A mandatory condition for providing state support is the enterprise's fulfillment of the main indicators of financial and economic activities. The released funds are to be directed towards production development. Commenting on the deputies' decision at the request of a BELTA correspondent, Gennady Grebnev, Chairman of the Economics Committee of the Vitebsk Regional Executive Committee, recalled that the communal unitary Vitebsk Regional Sewing Production Enterprise "Vitebchanka" is currently undergoing financial recovery. Previously, it received state support and its overdue accounts payable were restructured. Throughout the entire period of state support, the enterprise has been fulfilling the conditions for its provision: it pays current payments on time, has fully repaid the restructured debt on payments to the Social Protection Fund of the population, and has been exempted from paying penalties on them. However, the financial situation of "Vitebchanka" remains difficult: the current liquidity ratio is 0.66 against a norm of 1.3, and the own working capital ratio is minus 0.55 against a norm of 0.2, which does not allow the enterprise to significantly increase production volumes and stabilize its financial situation. According to Gennady Grebnev, exempting the enterprise from transferring part of the funds received from leasing property and providing the opportunity for phased repayment of the accumulated debt of Br208 million for rental payments will allow "Vitebchanka" to replenish its working capital by this amount and additionally produce products worth Br700 million by the end of the year. This will ensure an industrial production growth rate of 110%. Based on the results of 2010, the enterprise will be able to achieve break-even operation, with a net profit of Br52 million. A one-time transfer of the existing debt to the budget and monthly payments threatened losses of Br300 million and failure to meet forecast indicators, which would have resulted in the loss of state support and the threat of bankruptcy. The "Vitebchanka" enterprise was founded in 1945. In 2001, it became communal property. It specializes in the production of men's, women's, and children's outerwear. The assortment includes over 100 items. The total number of employees is over 300 people. -0-