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"Plan B" Sought For United Textiles


The Greek government is preparing a plan B for the rescue of United Textiles, in order to overcome obstacles set by the European Commission to its initial plan. According to that plan, the Greek state would guarantee a 35 million euro loan to the ailing company.


The plan was announced at yesterdays meeting between finance minister Mr Alogoskoufis,the president of the trade union federation GSEE and the representatives of the creditor banks and of the company calls for:


- a more flexible stance by banks towards the conditions and requisites for granting the loan


- the subsiding of labour costs through EU programmes.

The final plan on United Textiles restructuring will be announced on September 23.

The government pledged to examine every possible solution to ensure the financing of the companys restructuring efforts and to allow it to keep a 5 million euro loan guaranteed by the state, regarded by the EU as indirect state funding.

Sources said that the Commission intervened after the complain of a competitor. The EU authorities informed the Greek finance ministry that providing a guarantee is an indirect state aid which breaches EU competition legislation.

Stelios Kraloglou

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