Sunday, February 3, 2013

Dinkic: Government to help Tigar corporation

PIROT - The Serbian government will provide Tigar corporation with a short-term loan of RSD 200 million so that its workers could get salaries for the last two months and health care allowances, Serbian Minister of Economy and Finance Mladjan Dinkic stated on Saturday.

He said that Tigar will also get a guarantee of the Development Fund amounting to EUR 15 million so that it could reprogram debts, secure funds for working capital, and meet orders. Moreover, Tigar can count on a EUR 4 million loan by the European Investment Bank (EIB), the minister said touring the factory premises in Pirot, southeast Serbia, stressing that this would solve all its problems.

 He said that the factory will get first funds next week, adding that the process of financial restructuring should be completed this month in order for the factory to step up production, workers to be paid on time, and Tigar to return the money to the government. Dinkic noted that Tigar came across financial difficulties last year due to the bank loans it had taken in the previous period, adding that the government has decided to help this factory so that it could return to the position of the leader in the rubber industry in a short time. 

 The minister underlined that Tigar has a huge market, but that it does not use it because the company does not have enough working capital as it paying off debts. “It is our role to offer help now when it is needed the most as we know that Tigar has competent people and that later it will be self-sufficient,” the minister said, adding that the company is expected to record export of EUR 65 million this year. After touring Tigar, Minister Dinkic visited the traditional fair in Pirot. Photo Tanjug, R. Prelic

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