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Concessions Time-Limit Complicates Access to Money

CHILE - Invertecs general manager, Andrs Parodi, believes in the Chilean salmon industry recovery but he doubts that the 25 years time-limit for concessions, proposed in the legislative bill that will regulate local aquaculture, is going to prove effective.

According to Fishfarmingexpert.com, Mr Parodi said that these kind of restrictive measures reduce value to companies and shareholders because they limit the concessions’ economical value.

He added that this analysis has to be made taking into account the short-term, before deciding on the long-term 25 years time limit. “If then any company with a good growth plan and huge potential to hire workers requires long-term financing, are banks going to loan money knowing that an important part of that company’s assets could be lost? I think the answer is obvious and that is precisely the downside and restrictions of the time-limit, is is not based on companies’ worth,” he stated.

Mr Parodi also commented that through a private-public interworking the Chilean salmon industry has advanced towards its production levels prior to the sanitary crisis, “and once the productive risk is reduced and companies take up again their production levels, fresh money will came back to the industry”, he concluded.

the Fish Site Editor

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