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Government to consider further action on "Liepajas metalurgs" after in-depth financial analysis

Photo: LETA.
 RIGA, Jan 29 - The government will consider further action regarding the situation at the "Liepajas metalurgs" metallurgical company after an in-depth financial analysis is carried out at the company, Prime Minister Valdis Dombrovskis (Unity) told reporters after a meeting with Economy Minister Daniels Pavluts, Welfare Minister Ilze Vinkele (Unity) and State Treasury head Kaspars Abolins today.

Therefore, the government will not yet consider the possibilities for bailing out the company. "An in-depth financial analysis must be carried out first, and further action can be considered only after that," said Dombrovskis.

Pavluts agreed with the premier, stating that the company's "state of health" had to be checked first.

However, taking into account that the company's problems are pressing, Dombrovskis said that the financial analysis could be carried out in a short period of time.

Abolins told reporters that there were no problems regarding "Liepajas metalurgs" loans underwritten by the government, however, the company had problems with liquidity and it was unable to honor its liabilities to lenders in the short run. Therefore, postponing the repayment of the principal debt amount or restructuring the loan must be considered. Finding a solution is not impossible, taking into account that the company has to make its next payment in April.

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