Discuss possible solutions to business crisis
Written by Maria de los A. Hernandez
Tuesday, 02 June 2009
** Concerned with the operational and financial crisis lies with the companies in the region, business warns the Government that the policy even more unbalanced estatizadora public finances of the country. This compared to the recent nationalization of the sector briquetero

The Business Alliance of Guyana held next June 5 forum "Expropriation: solution to the economic crisis in Guyana", in order to discuss the operational and financial companies CVG, specifically the aluminum sector and the measures to be taken to overcome the problem.


For the private sector crisis continues to seriously affect the economy of Guyana, threatening with a contraction at the regional level.


"We have sustained large arrears in payments, which weakens our cash flow and now as a strong factor that exacerbates the crisis we are facing massive expropriations and estatizaciones. Many of our businessmen in Zulia State were subject to extreme measures that the business and left with severe effects on their estates, "says the Alliance.


To give a strong and united response, employers are organizing the regional event to agree on courses of action before the impending economic debacle.


The activity will take place on Friday June 5 2009 at 2:00 pm in the Auditorium of Loyola College Gumilla.






Estatizar is not the way






Recently, the Business Alliance of Guyana warned the government that "estatizar does not solve the economic crisis of these businesses." This, against the nationalization of the sector briquetero.


And is that "companies move into the hands of the State represents a significant expenditure of foreign exchange, resulting only in a change of shareholders. Could have been invested in the recovery of the aluminum companies, which are undergoing a serious crisis, resulting from high production costs, which creates great economic losses, in addition to a disinvestment in maintenance and technological adaptation, which leads soon collapse. "


For the Alliance "policy even more unbalanced estatizadora public finances of our country. The nationalization of Sidor resulted in an outlay of 1,970 million dollars, enough to finance a new business plan and / or expansion of production capacity already installed, designed to manufacture products that generate value added. "


With the wave of estatizaciones "is at risk the entire economy of the region and the stability of many jobs that depend on the operational and financial health of existing core firm. Already many small and medium enterprises have gone bankrupt and therefore many workers have lost their jobs due to this serious crisis. "


The Guild believes that employers "should not divert resources to take control of new ventures. On the contrary, we should deal with these existing resources, for early operational and financial recovery. "


Faced with the announcement: "The briquetero nacionalícese sector, there is nothing to discuss," said the president last Thursday, chambers and business organizations drafted a document that expressed concern.


The Business Alliance of Guyana will reiterate once again its readiness for dialogue to help in the recovery of businesses, as well as in developing a plan for economic sustainability of the region.






Firm proposal






Amid the crisis business, led by the Association of Industrial Metal and Mining Guiana (AIMM), the Chamber of Industrial and Mining Guiana (CIMG) Fedeindustria Bolivar Chamber of Commerce and Industry Caroní (Camcaroní) and the network of small and medium enterprises, raise one hand triangulation surplus of finished goods for immediate sale to a domestic buyer, and secondly, a special line of credit handled by the National Assembly for the total cancellation of financial either assigned and managed directly by the CVG, or through the public banks.


The union proposed a series of action lines, including the reproduction of sensitive production costs. "It is urgent review and action to improve the indicators of consumption of raw materials, inputs and all components of these costs, to bring them closer to market prices and to ensure the viability of these companies, the benefit of all. No company can survive if their production costs exceed market prices, nor can it address the social needs and community if they do not generate adequate resources. "