The Ministry of Finance will allocate 12.5 million lei from the 2017 state budget to the state-run company “Fabrica de sticla din Chisinau” (“Chisinau Glass Factory”) for increasing its share capital, IPN reports, quoting a Government decision.
The Ministry of Economy, which is the factory’s founder, argued that in 2016 the factory stopped work as a result of an incident at the melting furnace of section No. 2. It thus had to initiate capital repair works. Also, the company works in a very harsh competition environment and permanent investment is needed to ensure its products are competitive.
In 2017, the factory aimed to invest €5.5 million and took out a bank loan of €3.5 million for purchasing the materials needed to repair the furnace. But this money is not enough for paying duties on the imported materials.
The Ministry of Economy also said that about 18 million lei will be collected from the factory as taxes into the state budget if this resumes work. Also, there will be earned dividends of 4.4 million lei.
It is planned that the state-run company will resume work this July. The factory employs over 500 persons who get an average salary of 6,103 lei.
