Wednesday, March 16 2011 16:43
VTB Bank (Armenia) provides $20 million credit guarantees to Mika Group
ArmInfo. VTB Bank (Armenia) has provided a letter of credit limit for Mika Group in the amount of US$20 million. VTB Bank (Armenia) Director General-Chairman of Directorate Valery Ovsyanikov and the owner of Mika Group Mikhail Baghdasarov signed a relevant agreement on Wednesday.
Under the agreement, the bank will fund the acquisition, repair and modernization of key assets, replenishment of circulating assets and issue letters of credit and guarantees of financial liabilities of Mika Group to the foreign suppliers of goods and services when necessary, Ovsyannikov told media. (Mika Group comprises Armavia Air Company, Mika limited and Mika Cement Company).
He said that the bank has always considered Mika Group as its strategic partner. Nearly half of the limit will be invested in development of Armavia Air Company and the second half will be spent on the other two companies engaged in cement production and fuel import, V. Ovsyannikov said. For his part, Mikhail Baghdasarov said that a Bombardier CRJ200 will be acquired from Lufthansa Company on the guarantees provided. The aircraft will be delivered in Armenia in May-June 2011. The company exploits another similar aircraft at present.
"The amount is not sufficient to pay for the given aircraft, but most of the funds will be spent on it," Baghdasarov said. He recalled that Mika Limited purchases rough oil in Kazakhstan, processes it at plants in Europe and then delivers the finished product to Armenia. VTB Bank will greatly contribute to this process," he said.
Armavia makes over 102 flights in a week to over 35 destinations in 20 countries. It exploits 11 aircrafts; Ђ320, Ђ-319, CRJ-200-3, Yak-42VIP, IL-86.
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