Debts of 19 animal breeding companies to be forgiven

The Government adopted a decision to forgive the debts of 67.99 million lei on internal and foreign loans of the 19 animal breeding companies whose activity is governed by the Law of March 13, 2003, Info-Prim Neo reports. The forgiven debts will be indicated in the financial reports of the given companies as nontaxable income. The Government also suggested abrogating the Law of March 13, 2003 regarding the measures aimed at remedying the financial and economic situation of the animal breeding companies. Minister of Agriculture and Food Industry Valeriu Cosarciuc said the given law allowed freezing the debts of the 19 companies until December 31, 2009. Consequently, their bank accounts were unblocked and some of the companies started to make profit. But the long-term debts indicated in the balance sheet do not allow the given companies to take out loans from banks. The companies need yet loans as their equipment is old and must be replaced. According to the minister, forgiving their debts is the most reasonable solution. Prime Minister Vlad Filat instructed the Ministry of Agriculture and Food Industry to analyze the situation and express its view on the future of the 19 companies. The state owns 100% holdings in three of the 19 companies, 14% of the shares in one company, and 23% of the shares in another company. The 100% holding in SA Carnevarus is owned by the employees. The other companies are joint and the shares belong to the founders, funds, employees or private individuals.