Spectator on facebook

Spectator on facebook

Figeľ: Cargo is able to repay its loan

Transport Minister Ján Figeľ has announced that state-owned railway freight carrier Cargo Slovakia will be able to repay a bank loan which had been in doubt, the SITA newswire has reported, quoting the minister. He said that Cargo is addressing the situation in cooperation with his ministry, which is its shareholder

Transport Minister Ján Figeľ has announced that state-owned railway freight carrier Cargo Slovakia will be able to repay a bank loan which had been in doubt, the SITA newswire has reported, quoting the minister. He said that Cargo is addressing the situation in cooperation with his ministry, which is its shareholder

"Cargo is solvent and can solve this problem. A year ago such an answer would not have been possible but now it is 'yes'," Figeľ said, as quoted by SITA. The debt of the company, which stood at some €600 million, or more than 82 percent of the company's equity capital, at the beginning of the present election term (i.e. in June 2010), was destructive, the minister said. It was necessary to adopt recovery measures so that the bank sector believed that all loans to date had not been lost and would be properly repaid. Without starting revitalisation of the railway company now, it would have been necessary to deal with the total bankruptcy of Cargo and a still deeper decline of the railway sector, he added.

A month ago, Cargo Slovakia announced that it was not asking the state for further help to improve its financial situation. The company added that it has been settling its obligations toward banks properly and on time. The company's management now says it is taking all steps necessary to repay a €13.5-million obligation to one of its banks by the end of August, and has stated that Cargo's financial stabilisation is on the short-term horizon.

Figeľ says that revitalisation of Slovakia's three state-run railway companies is necessary and that it was very important to initiate the current process. Cargo plans to reduce its overall losses this year to €55.5 million. Operating revenues are expected to increase by about 1 percent to €383.57 million and expenditure to fall by 23.7 percent to €298.34 million. Operating profits should therefore amount to €85.24 million.

The Železničná Spoločnosť Cargo Slovakia cargo railway company was established in early 2005 after the firm Železničná Spoločnosť split into two separate companies. Cargo took over its activities related to freight transport. Its share capital is €401.65 million.

Source: SITA

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Construction of underground roundabout changes traffic flow on Bratislava’s Mlynské Nivy

Mlynské Nivy Street will be transformed into a modern boulevard by the autumn of 2019.

New construction on Mlynské Nivy Street.

Slovakia is the first country to test a new VAT refund app

Getting money back for buying souvenirs in Slovakia will be easier - there will be an app.

Illustrative Stock Photo

Prosecution has found errancies in criminal files related to self-employed farmers

General prosecutor feels that some prosecutors in the east of Slovakia follow their own conscience and opinion and not valid legislation.

General prosecutor Jaromír Čižnár

What are the best tourism sites in Slovakia recommended by CNN?

In its travel section the article describes the 11 best places to visit, suggested by Pavlo Fedykovych.

The commemorative coronation procession of Maximilian II, June 24, 2018, starting at Bratislava Castle.