A SUCCESSFUL BELARUSIAN ENTERPRISE IS BROUGHT TO BANKRUPTCY

A successful farming company is going bankrupt in the Gomel region of Belarus - ten years ago, many dreamed of purchasing shares of the Gomelagrokomplekt OJSC because of their profitability. Payments on dividends reached 27% per annum, which was much higher than the existing rates on the bank deposits. However, by 2020, a catastrophic impossibility to pay the bills forced the shareholders to start bankruptcy proceedings.

According to the experts, the secret of the company’s past successes was participation in the state program.

By that time, the Belarusian authorities have adopted a five-year republican program aimed at the accelerating the development of the dairy industry until 2015. The state program ended, as well as the funding that the company received from the budget.

Gradually, the company began to decline in terms of profitability and was included in the list of the most lagging behind. Even the last year's agreement with Mongolia on the construction of a dairy cluster there (Gomelagrokomplekt was listed as an equipment supplier in it) could not change the difficult financial situation. The company continued to drown in loans, the volume of which, as experts found out, was 35-fold larger than the cost of the production itself. The fate of the 338 employees who worked at the company in 2019 turned out to be unenviable.

The company "Gomelagrokomplekt" is located in the agricultural town of Eremino.

Working in the market for the production of meat and dairy products, the company has recently been engaged in the production of milking machines and various equipment, necessary for the farms’ operation. At the end of May 2020, a special meeting was held by the shareholders of the organization, and a decision on the initiation of bankruptcy was made.