MMZ launch to yield taxes and foreign currency

04/20/16 21:47

MMZ launch to yield taxes and foreign currency

The president recalled how the plant was nationalised and what it requires for uninterrupted performance

Tiraspol, 20 April. /Novosti Pridnestrovya/. In recent years Moldova Steel Works has accumulated considerable debts and cannot survive without government assistance. And the resignation of the people who are able to attract significant financial resources will have an adverse impact on its work, said President Yevgeny Shevchuk on the First Pridnestrovian TV channel.

The head of state said that today the Accounts Chamber together with the prosecutor's office is running checks of the plant's work not only in 2015 (upon the Supreme Council's demand), but also of the terms of its privatisation in the mid-1990s. According to the president, the fact that «according to preliminary data, the budget had received only $2.3 million» when the plant was being sold to private persons raises most of questions today.

Speaking about the nationalisation of the Rybnitsa steel giant, Yevgeny Shevchuk noted that in the past 3−4 years it has worked erratically and incurred serious losses. As a result, the total amount of losses has made tens of millions US dollars.

«The owner himself suggested that the plant be nationalised, realising that under such circumstances… the plant can't survive without government assistance. And now the government's task is, so to say, cope with the situation. But this is the hard task for the government because it cannot offer a direct loan, and when the government got MMZ back, a question arose as to where to find working assets to purchase metal scrap and launch the plant," the president recalled.

In this connection, according to the president, today the country «needs people who are able to involve corresponding resources»; at the same time, «an exit from Pridnestrovie of people, organisations and companies that have any resource base is not beneficial.»

«As for the former director, he really managed to attract resources to purchase consumables, metal scrap, etc.; the plant worked for some time, and workers received wages. We know there was a serious collapse in prices for finished products last autumn; there were losses, but in any case the government's concept and strategy are to maintain this multi-thousand collective," said Yevgeny Shevchuk.

He underscored that the plant's launch, scheduled for the end of April) and the sale of products (for the end of May) would not only bring taxes to the state coffers, but also promote a serious influx of foreign currency.

As for the new director of MMZ (Talgat Daytaziev has announced his resignation), his duties are being discharged now by a technical manager. It is the shareholders' meeting that will elect the plant's permanent management.

 

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