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Kobyakov: Reducing prime cost by 25% is a priority

MINSK (BelTA) – Reducing the prime cost of products by 25% is a priority for each and every enterprise, Belarus Prime Minister Andrei Kobyakov said in an interview with Belarus 1 TV channel on 24 April, BelTA has learned.

“The president clearly said, although it might seem that his idea is not brand-new, that it is needed to reduce costs. Do not ask for money to support inefficient and loss-making activities, but adjust your activities to the new economic conditions. These conditions will remain unchanged. Of course, we will try to soften negative trends, but if an enterprise is unable to ensure the balance of income and spending, we will not be able to do anything. Reducing the prime cost by 25% is a priority,” Andrei Kobyakov said.

The prime minister is convinced that inefficient and loss-making enterprises having enough reserves should do their best to reduce the prime cost. “Many people think that we will give money after we stop talking. Then they will live large, spend the money, and hope that we will give more. This will never happen,” Andrei Kobyakov stressed.

The socio-economic development program for 2016-2020 which will be discussed at the All-Belarus People's Congress in the near future does not envisage thoughtless monetary expansion leading to price hikes, devaluation of the national currency, and other negative consequences. “The program encourages us to ensure normal parameters of the macroeconomic and monetary policies. It also reads that the inflation should be around 5%,” the prime minister said.