July 27, 2009
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Home / News / Today's Headlines / Rosneft Has Repaid Its Half-Billion in Bailout Loans

24.07.2009

Rosneft Has Repaid Its Half-Billion in Bailout Loans

The repaying of loans given to Russian

companies  in  order  to  buy  out  their  assets from Western financial

institutions cannot last indefinitely, and borrowers must start building

their business as usual, Russian Prime Minister Vladimir Putin said at a

meeting  with  Vnesheconombank  (VEB)  chairman  Vladimir  Dmitriyev  on

Saturday.

 

     Putin  asked how much money was spent "to pull our large companies'

assets from  Western  financial institutions and to re-deposit them with

Vneshecombank."

 

     A total  of  $10 billion has been spent, with Rosneft having repaid

its $577  million loan early, and others using the resources provided by

VEB for refinancing fully and on time, the VEB chief said.

 

     Companies which received refinancing and "those which are likely to

apply for  an  extension  at  the  end  of the lending period, certainly

welcomed  the  decision by the VEB supervisory board allowing a one-year

extension of these loans," Dmitriyev said.

 

     "Naturally,  [such  extensions  are  possible]  provided  that  all

original  loan  terms,  as well as pending and additional conditions are

complied with," the VEB chief said.

 

     "Basically,  we  have  prepared  draft  loan  agreements,  but  the

extension  of  these  loans  will be based on market rates, and the main

financial  terms  must  be  agreed  upon at the time of loan extension,"

Dmitriyev said.

 

     "I  mean  those  market  rates  that  will  be  applicable  to  any

particular  borrower  depending  on  his  risk  on the part of financial

institutions on the day of extending the loan," the VEB chief said.

 

     "This  is  a timely measure, it was our conscious decision amid the

global financial  crisis. At the same time, bank clients must understand

that prolongation  cannot  last  forever.  They  have to gradually start

building their business as usual," Putin said.

 

 

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