Despite the difficult situation with the loan from the Chinese Eximbank there is no question of default to suppliers and buyers of the JSC “State Food-Grain Corporation of Ukraine” (DPZKU).
According to “ProAgro Group,” this was stated by the acting chairman of the board of DPZKU Vasily Kovalenko in an interview to “Ukrinform”.
“Despite the pre-default state, in fact, on the bonded credit obligations, even taking into account the low level of working capital in the corporation, we are not talking about default to our suppliers and customers. Yes, there are some difficulties in relations with our biggest creditor, but nobody will let the corporation go bankrupt. Although the company is unlikely to survive another change of management,” said Vasily Kovalenko.
The head of the corporation said that in 2012 DPZKU got a loan from the Chinese Eximbank under the state guarantees. And so far the corporation can’t cope with the debt burden on its own. A special interdepartmental commission was created to resolve this issue.
“The government’s principal decision is: GPZKU must remain on the market and continue to function. It must be turned into a global state-owned national grain trader with a full cycle of grain production – from growing to selling. Actually, the Chinese have also pointed out many times that DPZKU should have a bank of land for growing products needed to deliver to China”, Vasily Kovalenko added.
Answering the question about the future of the corporation, the acting chairman of the board noted that solving the issue with the Chinese loan is the first priority today.
“We suggest not stopping and looking for alternative sources of financing. We have to repay the loan to the Chinese Eximbank and then move forward from scratch. We have already submitted a detailed plan to the Cabinet of Ministers, now we are at the stage of discussion”,- said the head of the company.
