EBRD plans to grant $70m loan to Moscow power utility

The European Bank for Reconstruction and Development (EBRD) plans to granta loan of $70m to the Mosenergo company. A respective agreement is expectedto be signed on August 14, Vladislav Nazin, Mosenergo deputy generaldirector for economics, reported at a news conference today. The term ofthe loan will be five years, and repayments are to be made once in sixmonths. Nazin pointed out, "one should not directly link this loan to the comingpayments to Eurobond holders." Mosenergo plans to spend some part of thesefunds on increasing the capacity of a hydroelectric power plant in theRyazan Region. The residual debt of Mosenergo to Eurobond holders reached about $155m atthe beginning of 2002. $45m are to be repaid this year. Mosenergo plans topay the remaining part of that sum in October..

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