Improving Financials for Private Corporations

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Improving Financials for Private Corporations

Many private corporations transfer their cash to the enterprise and go into debt which is growing because of the increased size of corporations. This cash drain is not in the interest of the corporations and causes an unnecessary additional cost of interest.

As is already done with state corporations, cash movement out of private corporations will be possible if a minimum amount of 80B remains in the corporation. This will improve the private corporation?s finances, prevent unnecessary bankruptcies and improve their profitability.

The next step will introduce automatic cash transfers from the enterprise to the private corporations which have a very bad cash position, in the same way it was done with state corporations. These cash transfers will be very limited and will gradually reduce corporate loans.

This feature will be introduced by the end of September.

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