Cargo Rail Company Produces Results

State-owned rail company Cargo Slovakia (ZSSK) managed to produce an operating profit of over EUR 29 million in 1H 2011, but the company is still chugging uphill and could face bankruptcy if the demand of a creditor bank for settlement of EUR 13.5 million is not met by the end of August.

Company general director Pavol Durinik told TASR newswire that the figure for 1H was EUR 3 million over the projection, which is a reflection of the cuts and austerity measures taken in the company aimed at financial stabilisation.

In this respect, the company has managed to cut the overall loss by EUR 30 million year-on-year, to generate a loss of just EUR 6.2 million in 1H 2011. Earlier this month a creditor bank called in a EUR 13.5 million loan, but Durinik explained that the company did not have the available finances to pay back such a large sum of money in one go. He said the company could face collapse and so requested assistance from the Ministry of Transport.

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