Some woodworking modernization loans will not be repaid

Six of nine woodworking enterprises under the operational management of the Development Bank will be unable to repay loans they have received for modernisation by 2030. Given the maturity terms of the loans and preferential interest rates, this means that these enterprises are financially insolvent. As are result, employment in the industry will reduce, state support for the industry will increase in order to stabilise the industry’s financial situation, and some enterprises may be subjected to readjustment procedure. All remaining non-performing loans granted for modernization of the woodworking industry, will be purchased from banks and transferred to the Development Bank for servicing in order to keep them afloat and preserve employment.