April 8 2002, 17:05 UNIAN

State debts. Poor state.

UNIAN reported that UkrAgroTekhService owes the state US $264 mn which represents unpaid amount of previously taken loans. Four foreign credits were received by the said entity within the past decade guaranteed by the state and Ministry of Finance.

This concern established by the government and MinAP turned into "inactive, non-solvent entity creating large amounts of damage to the state".

According to from the Accounting Chamber this concern has been under liquidation, restructuring and filed bankruptcy since mid 2001. All property assets of the said company even if taken all will suffice for only 25% of the debt. "Such astronomic debt figure cannot be refunded to the state", believe experts from the Accounting Chamber.

The auditors hint that this happened because the Cabinet, MinAP, Ministry of Finance and UkrExImBank have been "watching the inefficiently operating concern without big concern."

They should have taken measured back in 1995-6 and pay for agrimachinery taken through German credit line.

Inefficiency of this venture could be seen back then because distribution of the foreign equipment was done without studying of the lessee, his solvency, no mortgage contracts were signed, etc.

98% of the lessees proved insolvent where half of those do not pay a penny.

The examination proved that government took rather formal approach to controlling this issue and until now the government failed to nominate the cessionary of UkrAhroTekhServis.