Daugavpils, 2016-10-26 09:09 CEST (GLOBE NEWSWIRE) -- JSC „Daugavpils Lokomotīvju Remonta Rūpnīca”, in addition to the notification from 25.10.2016, notifies that after long-lasting negotiations regarding credit extension issued by Swedbank, on 21.10.2016, from the part of the bank extension condition was suggested, where repayment of considerable part of credit was supposed through a lump sum. This condition during the current financial situation is impracticable.
That is why to avoid development of a negative scenario, the company turned to the government of the Republic of Latvia with a request on provision of governmental guarantees to ensure bank credit.
The plant’s board takes the following measures to stabilize and develop the company:
1. Negotiations have been started and conducted with a number of commercial banks of Latvia regarding refinancing of credit liabilities before Swedbank and increase of credit amount. Likewise, at the same time, negotiations are being conducted with about changes of crediting conditions.
2. The company has developed a powerful strategic development plan regarding the following areas:
2.1. continuation of activity in the mastered market niche – repair of locomotives belonging to the companies of the Customs Union;
2.2. modernization and repair of rolling stock in the markets of the European Union;
2.3. production of spare parts for equipment, which was partially purchased with support of LIIA;
2.4 production of a new rolling stock – trams for Daugavpils and electric trains for PV;
2.5. modernization of diesel trains according to the project developed for PV.
To execute this plan, we need a credit line with low interest rate and long term of repayment.
3. The Board intends to turn to the Ministry of Economics and the Ministry of Transport with specific offers regarding support of local business.
We emphasize one more time that JSC „Daugavpils Lokomotīvju Remonta Rūpnīca” has never asked and does not ask for money from the government. We request to provide support to the local producer, which is one of the forms that means guarantee to provide credit of a commercial bank. After getting support for „Daugavpils Lokomotīvju Remonta Rūpnīca”, during this situation that is so critical for the company the government of the Republic of Latvia will help not only to save the company, but also save the whole sector of transport machine building of the country.
Board of JSC „Daugavpils Lokomotīvju Remonta Rūpnīca”
t. 65404420, petrova@dlrz.lv