State forestry company to get €67 million public loan

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 a document submitted by the Economy Ministry for interdepartmental review.

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 a 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 10 years, with the first instalment deferred until 2012, the SITA newswire wrote.

“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 the jobs of about 2,000 part-time employees. With the state assistance Lesy SR would also be able to carry out proprietary settlement of forest lands costing about €15 million over two years.

“The company also needs to cover the cost of removal of flood damage amounting to €5 million,” reads the document.

The company’s management plans to generate funds for repayment of the state assistance by gradually increasing the price of its wood after the market recovers and by saving costs by internal restructuring.

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

Top stories

A huge scale model of Banská Štiavnica.

Weekend: Bratislava is all set for summer

Meet Ukrainian cinematographer Leonid Burlaka through a screen, explore Slovak science, or hop on historical trams.


22 h
Slovakia's former UN youth delegate Petra Pauerová.

The UN is only as good as we are, says Slovakia's former UN youth delegate

Petra Pauerová, a university student, talks about her experience as a UN youth delegate.


24. jun
Israeli artist Menachem Edelman-Landau who lives in Banská Štiavnica.

Life of Israeli artist changed forever after he painted a Slovak woman

Painter Menachem Edelman-Landau had to alter his travel plans after an unexpected event turned his life upside down.


20. jun
SkryťClose ad