Credit crunch squeezes factories

Seven out of 10 small- and medium-sized factories are struggling to survive as a result of the credit crunch, according to the Israel Manufacturers Association.
"We are talking about 1,400 small- and medium-sized factories employing between 20 to 100 workers," Oren Harambam, head of the association's business economics division, said Wednesday.
According to the association's estimate, a credit shortage of NIS 700 million was causing the factories problems, Harambam said.
"If the credit was available to small- and medium-sized factories, it would minimize the wave of layoffs and collapse of factories, while helping hundreds of factories to overcome this crisis in better shape," he said.
Harambam said the association would hold a special meeting on Monday in Tel Aviv that will focus on financing solutions for small- and medium-sized factories.
According to the association, 17 factories were closed or broken up in 2008, including six in hi-tech, five in the textile industry and two in the chemicals and pharmaceuticals sector. Some 2,000 factories are members of the association.

On Tuesday, Vita Pri-Hagalil, the Hatzor Haglilit food company facing the threat of liquidation, was granted a temporary reprieve of a week by the Haifa District Court. The court ordered all proceedings to be frozen until March 1 in an attempt to prevent the factory's closure. The court will reconvene on March 5 to see if an alternative solution has been found.
"The Vita Pri-Hagalil fruit plant in Hatzor Haglilit is not the only one," Histadrut chairman Ofer Eini told Army Radio on Wednesday. "I cannot give names, but there are other factories in the periphery that are on the verge of economic collapse and mass layoffs. It's no longer just about the Vita Pri-Hagalil factory; it's a national issue about factories in towns in the periphery."
The Histadrut was in talks with factories at risk of collapse, Eini said.

"The government has a moral duty," he said. "The situation of employees in the periphery must be taken care of. The workers are the only ones paying the price. I call upon the finance minister and the prime minister to do everything necessary to avert the closure of factories. This is a national issue; if the factory shuts tomorrow, the workers have no alternative."
Eini is scheduled to meet with Prime Minister-designate Binyamin Netanyahu on Thursday in Tel Aviv. Netanyahu has promised to develop a plan to avert the closure of factories under threat in the periphery.


[SigmaForex Trio Contest]

SigmaForex Ultimate Forex Monthly Champion Double your pleasure, Double your fun and Double your FUNDS.

SigmaForex has exactly what it takes to give you the ultimate forex trading experience and what it needs to make it more successful, more attractive, and more effective.SigmaForex Practice Competition

Let us show you that if you're not utilizing SigmaForex services, you're missing the boat…and potential profits! Every Service taken on is given the time, skill necessary, and awareness to detail to produce the results that your satisfaction demands.

Nothing comes between us and you, we rely on your business; therefore, you can rely on ours, which means that we will be working hard on our behalf to make certain of your success.

Reliability Is Natural For Us, Our Services and Products Natural For You.

We care to make you feel secure with us, and that is a priceless service that will bring in continuous benefits for both of us. Which is why we have created the Trio contest, it is the First and the Only Tri contest in the World wide Financial Market called Forex.

TRIO Contest divides into 3 Main contest stages,

1. Elite Competition
Every game is new business opportunity (Elite Contest)
2. Oriental Competition
A Virtual World with Live Pictures (Oriental Contest)
3. Post-Graduate Competition
Opening a new page in your Life (Post-Graduate Competition)