* The European Commission has not given the authorities any hopes that it would approve the state aid
* The Ministry of the Economy is attempting to apply a different financing system
The problem of Oltchim is about to blow up in the face of the authorities, which have achieved no results with their plan to resume operation of the plant - obtaining a loan of at least 10 million Euros from the creditor banks and obtaining the approval of the European Commission for the granting of a bailout package of about 20 million Euros.
Varujan Vosganian, the minister of the Economy, yesterday said, for BURSA: "The creditor banks don't want to come up with further financing for Oltchim. BCR has exceeded its exposure to Oltchim, and if CEC were to grant it this financing, it would be considered a state aid. Traders want to continue to work with Oltchim, but they don't want to make any advance payments. We need to come up with another financing solution for Oltchim: we're talking about factoring".
The factoring contract is a commercial loan contract, which involves a specialized lender (a banking company or a specialized financial institution) in collecting invoices and a trading company which provides products or services. The supplier is looking to collect its invoices before maturity, and the factor (the company specializing in collecting invoices) is looking to make a profit, usually a certain percentage of the invoices it settles in advance.
Minister Vosganian said that technically, the European Commission gave him little hope that it would approve the state aid for Oltchim: "The technicians of the Commission consider that the AVAS and Electrica did not simply act like a regular creditor and that they have granted Oltchim a state aid. We are going to continue our talks".
Sources close to those talks in Brussels claim that the representativ
