Gov­ern­ment sup­port di­vert­ing LDz prof­its for rail­way de­vel­op­ment

Baltic News Network - - Front Page -

Latvia’s gov­ern­ment has con­cep­tu­ally sup­ported es­tab­lish­ing the por­tion of Latvi­jas dzelzceļš prof­its to be paid in div­i­dends in 2018-2020 at 0%, al­low­ing the com­pany to use prof­its and di­vert them to the de­vel­op­ment of in­fra­struc­ture de­vel­op­ment and restora­tion, as con­firmed by LDz.

This in­cludes di­vert­ing prof­its for the for­ma­tion of re­serves to be used for preser­va­tion of sus­tain­able func­tion of LDz and re­al­iza­tion of planned in­fra­struc­ture projects.

This con­di­tion will have to be taken into ac­count dur­ing the de­vel­op­ment of the leg­isla­tive draft On State Bud­get for 2019 and fur­ther leg­isla­tive drafts for the next three years.

In ac­cor­dance with state cap­i­tal as­so­ci­a­tion’s man­age­ment needs, LDz has pre­pared a medium-term strat­egy for the next ten years. Its re­al­iza­tion in­cludes keep­ing the com­pany’s prof­its in com­pany hands and di­vert­ing it for the de­vel­op­ment and restora­tion of ex­ist­ing in­fra­struc­ture, as noted by LDz.

LDz also notes: «The ne­ces­sity to se­cure ap­pro­pri­ate fi­nan­cial bal­ance for in­fra­struc­ture man­age­ment is de­tailed in EU Di­rec­tive for Cre­ation of a Sin­gle Rail­way Space. To en­sure in­fra­struc­ture main­te­nance on a high level, as well as cost sta­bil­ity for car­ri­ers, it is im­por­tant to keep the com­pany’s fi­nan­cial sta­bil­ity in­de­pen­dent of trans­port vol­ume changes. Keep­ing prof­its in the hands of the com­pany would help se­cure sta­bil­ity.»

«LDz is in the process of re­al­iz­ing very se­ri­ous changes – by balancing op­er­a­tions in con­di­tions that are very com­pli­cated for the in­dus­try, we have suc­cess­fully re­or­ga­nized the com­pany’s in­ter­nal struc­ture, mak­ing work more ef­fi­cient. At the same time, LDz is hard at work on de­vel­op­ment of a new trans­port cor­ri­dor and at­trac­tion of new cus­tomers to help im­prove Latvia’s in­ter­na­tional cor­ri­dor. We are very happy to see the gov­ern­ment no­tice our hard work and pro­vide sup­port for con­tin­ued ef­forts,» says LDz Pres­i­dent Ed­vīns Bērz­iņš.

Paula Čurk­ste/LETA

Newspapers in English

Newspapers from Latvia

© PressReader. All rights reserved.