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"Liepajas metalurgs" multimillionaires are not doing anything to help their company - Dombrovskis

Valdis Dombrovskis. Photo: LETA.
 RIGA, March 27 - It would be wrong to believe that the government alone must solve the "Liepajas metalurgs" crisis - the company's shareholders must also offer their proposals, however, these people, who have earned many millions from "Liepajas metalurgs", are not doing anything to rescue the company, Prime Minister Valdis Dombrovskis (Unity) said in an interview with the LNT television this morning.

Yesterday the government was acquainted with "Liepajas metalurgs" audit report. According to the report, auditors have not established any fraudulent activities at the company, but it does say that "Liepajas metalurgs" has grave financial problems, said Dombrovskis.

That is why a "Liepjas metalurgs" creditors' club has been set up, which also includes state representatives, to find solutions to the company's liquidity problems that must be solved as soon as possible. At the same time, the company also has serious management problems that will have to be solved in the long run.

It must not be that shareholders in a company that is experiencing financial problems simply go to the government and ask it do to all the work, stressed Dombrovskis, explaining that shareholders must also do something. It is shareholders who should have a plan how the given company's problems can be solved, explained Dombrovskis.

Dombrovskis also said that "Liepajas metalurgs" shareholders were not prepared to use their own money to help the company.

"Liepajas metalurgs" has said that the main reason for its financial problem is the increasing electricity prices. This is why the Economy Ministry has temporarily put on hold its electricity market liberalization plan.

Dombrovskis said that the Economy Ministry could submit the electricity market liberalization bill to the government in the near future, stressing that the government had several times asked the ministry to calculate how market liberalization could affect consumers. However, no such calculations have been presented to the government as yet.
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