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Banks To Grant Loans To United Textiles Under Terms

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The restructuring of United Textiles will be financed through loans to be paid by the creditor banks in installments. The creditor banks have asked the company to accept specific terms so that they grant it fresh loans.

 

Government officials estimate that negotiations will be concluded as planned and that the loans will be granted soon. United Textiles will be granted a 35 million euro loan , guaranteed by the Greek state, under the condition of holding the shares of its main shareholder in pledge.

The Greek government drafts an horizontal plan for the support of the Greek textile industy, to be announced soon. The plan was discussed between the development and employment ministers yesterday.

The plan calls for the provision of guarantees by the Greek state to banks so that they grant loans to textile industries, sources said. The loans will be used for the restructuring of the sector, which will include early retirement schemes. All actions will conform to EU legislation.

These measures form part of a wider effort to back the ailing European textile sector. Owing to an influx of cheaper products from third countries, the textile industry in Europe is facing serious problems and massive layoffs have already taken place.

The textile sector employs around 80,000 people in Greece, compared to 150,000 just some years ago.

Stelios Kraloglou

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