RUSSIA: AvtoVAZ applies for govt loan guarantees
AvtoVAZ has applied for 10 billion roubles in government loan guarantees, the company's President Boris Alyoshin has said.
Alyoshin told business daily Vedomosti that AvtoVAZ hoped to get guarantees worth 26 billion roubles, but the government limited the amount of guarantees to one company to 10 billion roubles.
Before getting the guarantees, AvtoVAZ should provide a confirmation that banks are willing to lend 20 billion roubles to the carmaker, an official with the Industry and Trade Ministry said. Government guarantees could cover half of borrowings.
AvtoVAZ plans to use the borrowed funds to repay debts to suppliers, Alyoshin said, as the carmaker currently owes about 15 billion roubles to them.
Parts shortages caused by suppliers awaiting late payment on shipped parts have reportedly disrupted AvtoVAZ production.