The Nizhny Novgorod government will meet with bankers on Wednesday and Thursday to discuss lending to struggling automaker GAZ Group, the region’s governor Valery Shantsev has said.
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It will also discuss the purchase of bonds that will be offered by the group’s major production facility, the Nizhny Novgorod-based Gorky Automobile Plant or OAO GAZ, Shantsev told Prime-Tass.
GAZ Group needs 36bn rubles to offset falling consumer demand, Shantsev said. The group’s consolidated revenue dropped to 6bn rubles in November from 16-17bn rubles in September, he said. The revenue in December is also expected at 6bn rubles.
GAZ Group has not received loans since September and has spent about 4bn rubles of its own funds to repay previously taken loans, Shantsev said.
OAO GAZ has suspended a number of investment projects due to a shortage of funds, Shantsev said.
OAO GAZ plans to publicly sell four five-year bond issues worth 5 billion rubles each to refinance its short-term loans, according to earlier reports.
