ARMENIAN GOVERNMENT EXTENDED TERMS OF CREDIT PROVISION TO AGARAK COPPER MOLYBDENUM INDUSTRIAL COMPLEX

ArmInfo
2009-08-27 19:58:00

ArmInfo. At Thursday session, the government of Armenia extended
the terms of credit provision to Agarak Cooper Molybdenum Industrial
Complex.

Finance Minister of Armenia Tigran Davtyan, who introduced the
decision, said a decision was made at the visiting session to Syunik
region to grant credit to ACMIC to the sum of $14 million for 4 years
at a half-year rate Libor + 8 from the date of the credit repayment
beginning December 15, 2009.

(Ed. The funds have been granted within the frames of the Russian
stabilization credit of $500 million received by Armenia). The loan
was provided to acquire equipment and upgrade the complex. Moreover,
by the government’s decision, the credit can be also used to solve the
transport problems and replenish the floating capital. The minister
said this will allow ACMIC to implement its investment programme,
fulfill the assumed liabilities and fully restart the complex. In
its turn, Minister of Energy and Natural Resources of Armenia Armen
Movsisyan said the complex carries out all the agreements with the
country’s government on both the workplaces and investments. According
to the prime minister, the government responds to the plant
management’s request and allows to replenish the floating capital.

However, the company undertakes to sign a contract of pledge with
the government on the acquired equipment, during 4 months, he
said. GeoProMining Group of companies acquired the shares of Agarak
Copper Molybdenum Industrial Complex in December 2007.