Večer comments on impact of floods on businesses

Ljubljana, 8 August - The newspaper Večer says in its commentary on Tuesday that flood damage to businesses in Slovenia will reach hundreds of millions of euro, not only because production had to be suspended or was completely destroyed, but also because many buyers will move on to new suppliers.

But there is hope, as many business owners and their employees have shown the determination to rebuild. A swift response by the government is also good news, with the cabinet planning to approve a state-subsidised furlough scheme today.

Moreover, inexpensive liquidity loans will provide welcome financial injections at a time when companies will be left without revenue but will have to invest in repairs, infrastructure and new machinery, the paper says under the headline Alarm Bells Going Off in Business.

It looks like banks, which have seen record profits in the past year, are also willing to help companies and individuals who are now out of a job and unable to pay off their loans.

Insurers will also get to feel the consequences of the natural disaster, the two biggest already losing ground on the stock market. The paper wonders whether the disaster will bring to the fore the small print in insurance policies.

© STA, 2023