The crisis at Italian agri-food giant Parmalat, described by Economy Minister Giulio Tremonti as "Europe's Enron", sent shockwaves through Italian industry
Published:
21 December 2003 y., Sunday
"The situation is very serious," Prime Minister Silvio Berlusconi said, announcing his government would intervene to try to salvage the agri-food giant "to restore confidence and the country's reputation".
The scandal, sparked by the discovery of a four billion-euro "hole" in its accounts, follows the recent spectacular collapse of another high-profile Italian food company, Cirio.
"The government will intervene above all to save the company and its industrial sector and to save the jobs...." Berlusconi told an end-of-year press conference in Rome.
He said Tremonti, whose "Enron" remark was reportedly made at a cabinet meeting which discussed the crisis on Friday, would submit rescue proposals to a cabinet meeting on Tuesday.
Parmalat, Italy's leading agri-food company with a workforce of more than 36,000 in 30 countries, was already struggling to cover estimated debts of 6.0 billion euros when the hole was discovered.
The Bank of America (BoA) disowned the authenticity of a document certifying that Parmalat's Cayman unit Bonlat Financing Corporation had 3.950 billion euros (4.9 billion dollars) of liquidity at December 31, 2002.
Analysts said Friday Parmalat was close to declaring bankruptcy after the discovery of the massive hole in the company's accounts. affected" by the crisis, Berlusconi said.
Šaltinis:
AFP
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
In January 2009, the EBRD commissioned two Italian consultants to study Turkey's sustainable energy market in preparation for future investments.
more »
Next week a delegation of more than 50 Chinese businessmen, accompanying the Chinese Vice-Premier Hui Liangyu, are arriving to Lithuania.
more »
The German developer “ECE” together with Lithuanian partners opened a new shopping and entertainment centre Ozas Gallery in Vilnius.
more »
As it embarked on an ambitious stimulus spending, Thailand turned to the World Bank for advice on how to fast track the spending coupled with proper management controls to keep programs on the rails.
more »
Peter Reiniger Business Group Director for Central Europe and the Western Balkans from the European Bank for Reconstruction and Development visited Latvia to sign subordinated loan agreement with Parex banka.
more »
On Monday AB DnB NORD Bankas started placement of a 13-month fixed-rate Lithuanian government bonds. It is the first time when Lithuanian sovereign USD denominated securities will be available on Lithuania’s retail market.
more »
The Swedish business daily Dagens Industry published an interview with Andrius Kubilius, the Prime Minister of Lithuania, to Bloomberg News.
more »
The economic crisis still has a firm grip on large parts of the world. But Sweden’s Minister for Trade Ewa Björling can see bright spots.
more »
The European Bank for Reconstruction and Development and KfW Entwicklungsbank (The German development bank) are providing a financing programme worth up to €28.9 million to MegaBank - one of the strongest regional banks in the eastern Ukraine.
more »
A settlement in an international tax dispute that strained U.S. ties with Switzerland.
more »