OREANDA-NEWS. Belarus' President Alexander Lukashenko has ordered to finalize production upgrade projects at Belarusian woodworking companies controlled by Bellesbumprom by the end of 2014. Lukashenko set the deadline January 31 at a meeting to discuss the state and development prospects of the companies affiliated with Bellesbumprom Concern.

Chairman of the Bellesbumprom Group Yuri Nazarov noted that the accomplishment of all the projects which are currently underway could be possible only given continuous financing of investment projects. In his words, as of January 1, 2014, the amount of unused loans totalled ˆ164.4 million, or almost 16% of the envisaged volumes.

Nazarov pointed out that Bellesbumprom companies are ˆ57 million short of circulating capital. In this context, Belarusian woodworking companies which already have a big credit debt will find it impossible to draw new loans at market interest rates in order to start new upgrade projects.

Chairwoman of the National Bank of Belarus, Nadezhda Yermakova, admitted that providing FX credits is not a problem, as all problems start when credits mature and turn into a bad debt. Yermakova suggests providing Bellesbumprom companies with FX credit support at 1-3% per annum.

In turn, Belarus' Premier Mikhail Myasnikovich suggests that Bellesbumprom companies should follow a planned economy pattern.

The President instructed the Prime Minister and the Chairman of the Board of the National Bank to help resolve all financial issues that were raised at the meeting. Lukashenko ordered the state agencies concerned to draft laws formalizing the final dates for the modernization of the woodworking industry.