General Director of the Power Machines Group Mr. Yakovlev signed an agreement with the Head of representative office of the European Bank for Reconstruction and Development to Russia Mr. Victor Pastor on attraction of a long-term credit for the sum of $35 million.
This is the first installment of the credit for an overall sum of $81.5 million. The decision on provision of the credit to the Power Machines Group was made in November of the current year by EBRD board of directors. The first installment will be used to finance export contracts of the Power Machines Group.
A second credit agreement for the sum of $46.5 million planned to be signed in January of 2004. These funds will be invested in refitting and purchasing of the new equipment for the plants (Power Machines Group' members): Leningradsky Metallichesky Zavod, Electrosila and Turbine Blades’ Plant.
The agreement between the leading Russian machinery-building company and the biggest international bank is an important step for the attraction of long-term credits needed for the development of Russian business. It demonstrates as well the growing confidence of the international financial market in the leading Russian companies.