Dear investors!

Unfortunately, by the resolution of JSC “Mortgage and Land Bank of Latvia” it was refused to grant credit means for purchase of the raw materials (metal), about which we informed you before and which we planned to receive in frames of the state support program to exporting branches.

As a reason for it there was mentioned that JSC „Ditton pievadķēžu rūpnīca” conducts a commercial collaboration mainly with the Russian Federation and state officials of the state bank don't see development prospects of Russian Federation economics, particularly, in the machine building industry. 

Let's agree that for the state in whose foreign economic turnover Russian Federation makes up to 50%, similar statements by the state officials of the state bank are strange to say the least.

JSC „Ditton pievadķēžu rūpnīca” has sent an official inquiry to the JSC “Mortgage and Land Bank of Latvia” about real reasons, why the Management Board of the Bank has cancelled the decision of its credit committee about granting of the state support, about circumstances and documents which have given occasion to such astonishing conclusions, and about publicity of these documents, but there was no reply.

There is an impression occurring that declarations of the government of the Republic of Latvia about support to the real exporting manufacturing will remain as the declarations, but Latvian enterprises, in distinction from their partners in the EU and Russian Federation, which receive support from the governments of their states, stay alone with their problems. At such way of looking manufacturing outlooks are by no means optimistic.

More significant, for instance, is the fact that the required sum of the state support was less than 0,1% of the sum, which was put into the support of JSC “Parex Banka”.

From what means the government of the Republic of Latvia is going to repay borrowed funds in the long view and fill up the budget by politics of “aid” to self-liquidating of real manufacturing and exporting companies, it remains an enigma.

P.S. For the lack of metal JSC „Ditton pievadķēžu rūpnīca” is forced to suspend the activity from 01.10.2009 for 15 days. Orders mainly from the European Union remain not fulfilled and not accepted.


B.Matvejevs
Chairman of the Council
 
E.Zavadskis
Chairman of the Management Board