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State forestry company to get €67 million in financial assistance

State-run forestry company Lesy SR should receive repayable financial assistance of €67 million from the state to help it overcome the economic and financial crisis, according to document submitted by the Economy Ministry for interdepartmental review. The money would be released from state assets and Lesy SR would repay it over a period of ten years, with the first installment being deferred until 2012, the SITA newswire reported.

State-run forestry company Lesy SR should receive repayable financial assistance of €67 million from the state to help it overcome the economic and financial crisis, according to document submitted by the Economy Ministry for interdepartmental review. The money would be released from state assets and Lesy SR would repay it over a period of ten years, with the first installment being deferred until 2012, the SITA newswire reported.

“Providing this assistance would enable switching to the required output in cultivation and protection of forests in 2009 and 2010,” states the Economy Ministry as quoted by SITA. The need for this activity amounts to €26 million and the company would concurrently secure jobs to about 2,000 part-time employees. With the state assistance, Lesy SR would also be able to carry out proprietary settlement of forest lands for about €15 million in two years.

“The company also needs to cover cost of removal of flood damages amounting to €5 million,” reads the document. The company’s management plans to generate funds for repayment of the state assistance by gradually raising wood prices after the market recovers and by saving costs by internal restructuring.

“Expected growth in prices of a raw wood assortment gives a guarantee of repayment from increased proceeds from sale of a raw wood starting from 2012,” SITA quoted the Ministry.
SITA

Compiled by Michaela Stanková from press reports
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