State Aid for Two Furniture Makers


The seven-year loans include two-year deferral on the repayment of principal. The interest rate is at six-month Euribor plus 0.25 percentage points. The loan is secured with a lien on the company's real estate, a release from the Economy Ministry said.

The ministry notes that both companies are at a high risk of bankruptcy, which would have a negative impact on the regions in which they operate. Brest Pohištvo employs 186 workers and Iles 68.

Iles already received state aid in June 2013, while this will be the first time for Brest Pohištvo, which had been battered hard as a 15-year partnership with furniture giant Ikea ended this year.