Govt. to approve RSD 200mn loan to Tigar Corporation

PIROT The Serbian government will provide Tigar corporation with a short-term loan of RSD 200 million, Serbian Economy and Finance Minister Mladjan Dinkic has said. He explained that the loan would be approved so that the company’s workers could get salaries for the last two months and health care allowances. Govt. to approve RSD 200mn loan to Tigar Corporation He said that Tigar will also get a guarantee of the Development Fund amounting to EUR 15mn so that it could reprogram debts, secure funds for working capital and meet orders. “Moreover, Tigar can count on a EUR 4mn loan by the European Investment Bank (EIB),” the minister said touring the factory premises in Pirot, southeast Serbia, stressing that this would solve all its problems. He said that the factory would get first funds next week, adding that the process of financial restructuring should be completed this month in order for the factory to step up production, workers to be paid on time and Tigar to return the money to the government. Dinkic noted that Tigar came across financial difficulties last year due to the bank loans it had taken in the previous period, adding that the government had decided to help the factory so that it could return to the position of the leader in the rubber industry in a short time. The minister underlined that Tigar had a huge market but that it did not use it because the company did not have enough working capital as it paying off debts. “It is our role to offer help now when it is needed the most as we know that Tigar has competent people and that later it will be self-sufficient,” the minister said, adding that the company was expected to record export of EUR 65mn this year. Tanjug

Govt. to approve RSD 200mn loan to Tigar Corporation

He said that Tigar will also get a guarantee of the Development Fund amounting to EUR 15mn so that it could reprogram debts, secure funds for working capital and meet orders.

“Moreover, Tigar can count on a EUR 4mn loan by the European Investment Bank (EIB),” the minister said touring the factory premises in Pirot, southeast Serbia, stressing that this would solve all its problems.

He said that the factory would get first funds next week, adding that the process of financial restructuring should be completed this month in order for the factory to step up production, workers to be paid on time and Tigar to return the money to the government.

Dinkić noted that Tigar came across financial difficulties last year due to the bank loans it had taken in the previous period, adding that the government had decided to help the factory so that it could return to the position of the leader in the rubber industry in a short time.

The minister underlined that Tigar had a huge market but that it did not use it because the company did not have enough working capital as it paying off debts.

“It is our role to offer help now when it is needed the most as we know that Tigar has competent people and that later it will be self-sufficient,” the minister said, adding that the company was expected to record export of EUR 65mn this year.