The government appears to have caved in under the troika pressure to liquidate LARKO and dismiss its staff employed at the Larymna factory, while creating a new company that will be privatized by then end of February.
This is the latest proposal from TAIPED and should the troika representatives approve, it will be included in the updated midterm recovery plan that will be presented in Parliament in October.
According to this scenario, the “new” LARKO will only include the Larymna factory and the Agios Ioannis mine. Employees facing dismissal will be give the option of being transferred to the new company, depending on the needs of the new owner. The new owner will not have to commit to maintaining any jobs.
This development has caused serious concerns amongst the banks that have paid out loans to LARKO, since this plan would mean that they would have to write off any claims due to the liquidation that is being planed.
