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Crucial Days For United Textiles



While the Greek government is waiting for a formal approval by the EU, so that it can guarantee a 35 million euro loan to save United Textiles, the creditors of the indebted company have yet to be convinced.


Sources told that out of six creditor banks only NBG and Alpha Bank have consented to the plan. NBG is United Textiles biggest creditor and has a special interest in saving the company. The rest of United Textiles creditors (Eurobank, ATEbank, Emporiki and Geniki) have not consented yet and are expected to take final decisions this week.

An executive of one of United Textiles creditors told that banks are troubled. Even though the loan is guaranteed, until now the capitals granted to the textile company have not born fruit. On the other hand, no one can ignore the job posts that will be lost in case United Textiles closes and the negative side effects on local economies..

On strictly business terms, granting new loans to United Textiles may not be the best strategic move for banks. But maybe the commitment of the government, of workers and local authorities may convince banks to finance the company. Besides, it is in the best interest of creditors that United Textiles stands on its feet again.

NOTE: Our report on the reluctance of creditors to grant fresh loans to United Textiles, caused a reaction by the company. We would like to point out that we report the events, always trying to be objective. However, we can understand the reaction of United Textiles and its employees, who are having a difficult time and are working in a tense environment.

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