01 June 2004 08:57
UFA ENGINE ASSOCIATION TO SEEK $100 MLN SBERBANK LOAN
UFA. June 1 (Interfax) - Ufa Engine Industrial Association (UMPO) plans to take out a Sberbank of Russia loan of $100
million for various investment projects, plant director Valery Lesunov told the press in Ufa on Tuesday.
Initial agreement was reached during talks between the two parties' managements. The funds will go to producing
engines for India under a tender UMPO won this past April.
Sberbank President Andrei Kazmin told the press that an agreement detailing the further expansion of cooperation with
UMPO will be ready in a month's time. It will include such points as short-term loans, streamlined settlements with
suppliers and investment programs.
"It's also possible the bank will expand its services regarding UMPO's export contracts, for servicing
coworkers on the plastic card market, and also giving them housing improvement loans," Kazmin said.
As to whether Sberbank plans to finance work and preparations for the production of fifth-generation aircraft
engines, Kazmin said, "The bank is prepared to finance such projects, but the enterprise itself should
clarify." Kazmin told Interfax that "the outcome of negotiations in Bashkortostan was that Kumertausky
Aviation Company and Ufa Meat Canning Combine also proposed cooperation." Every 50th of Sberbank's borrowers
is from Bashkortostan, he noted, and bank loans to enterprises in the republic have already topped 11 billion rubles,
and could even double in 2004.
Lesunov said UMPO now has a 1.5 billion-ruble Sberbank credit line.
UMPO is one of Russia's largest engine producers, making them for both military and civilian aircraft, parts for
them and components for helicopters. It is the world's only serial producer of fourth-generation controlled-vector
thrust engines and has exclusive rights to their production. UMPO sells to 49 countries.
The Bashkortostan property relations ministry owns 25% of UMPO, United Finances 17.61%, Stansfield Holdings Ltd.
17.13% and Ufa Machine- building Plant 10.25%.
[Interfax] |
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