The expert explained how to reduce the level of bankruptcies of Russian companies

© Fotolia / Evgeniy KalinovskiyМужчина with empty pockets. Archival photoThe expert explained how to reduce the level of bankruptcies of Russian companies© Fotolia / Evgeniy Kalinovskiy

The trend in the growth of bankruptcy of companies in Russia could be stopped if they stop akreditavimo your business, and will be looking for in the ways of internal optimization, says associate Professor of the Institute of business studies Ranepa Emil Martirosyan.

The center for macroeconomic analysis and short-term forecasting (CMASF) previously reported that the level of bankruptcies in Russia in September, close to the historical high reached in October 2009. According to analysts, in the third quarter, the number of bankruptcies in the Russian economy grew by 3% compared to the previous quarter and 12.4 percent compared to the third quarter of 2016.

To reconsider the policy

«In order to stop the trend of bankruptcy of companies in many ways you need to the business to review its policy in respect of the financial leverage and loans, but it is not akreditavimo your business, try looking for internal optimization processes to work more with investors who can enter the Charter capital, bringing the company’s liquid working capital and investment capital,» said Martirosyan RIA Novosti.

He stressed that the main thing — do not focus on earnings growth and to preserve financial stability and sustainability in the crisis. «Very often required by the shareholders from the business of growth erode the value of companies in a crisis, when the company is in the pursuit of profit secretiruyutza, while not achieving their goals of profitability,» — said the Agency interlocutor.

«In the end we see often in today’s practice, the phenomenon of «ignorable» companies whose debt exceeds a multiple of annual profits», — he stressed.

Martirosyan believes that the state to change the situation would help Russian producers access to Federal and national retail chains, distribution channels, many of whom have no such opportunity. It’s also the development of the Institute of state orders and public-private partnerships where the state in some, including infrastructure projects, can act as a partner to be subsidised credit, leasing, and other interest rates.

According to CMASF, negative dynamics is observed in the construction sector. Here, the level of bankruptcies in September, has updated the historical maximum — 242 construction companies of the Russian Federation was considered bankrupt. In trade, food industry and machine building sector the number of bankruptcies has returned to its maximum values in these sectors in September, 300, 33, and 29 companies, respectively, were considered to be bankrupt.

«If we talk about bankruptcy, where two competing dynamics — corporate debt and profits, the most vulnerable areas with the risk of such phenomena can be construction, transportation, mass FMCG (food), agricultural enterprises of the entire chain of processing from raw materials to finished products,» says Martirosyan.

Thus, according to the expert, to estimate the power factor in the decline of incomes of the population and key rates is difficult, since the fact of reducing the wages and unemployment are very volatile and vary by industries.