STO says FENAKA can be made profitable as a subsidiary

State Trading Organisation (STO)'s CEO Shimad Ibrahim has said that FENAKA will be made profitable once it is transferred under STO.

The Cabinet on Sunday approved the operation of FENAKA as a subsidiary of STO.

Speaking at a press conference at STO's head office on Wednesday, Shimad said FENAKA will be purchased as an asset and the transfer will be completed by next year.

He added that a lot of effort will be required to improve FENAKA's function which would include changes to its operation and number of employees. At present FENAKA employs 7,000 people.

Shimad said that STO has a large number of subsidiaries with a lot of experience which would be beneficial for FENAKA as well.

He added that FENAKA accumulated debt after the company stopped making payments to STO. As such, Shimad said that STO will manage FENAKA's debts under a specific payment plan to reduce cost and ensure long-term efficiency.

FENAKA owes MVR 4.1 billion in debt to STO.