AvtoVAZ is reportedly seeking a new loan worth 12 billion roubles (USD400m) in order to compensate workers it has let go.
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The Russian Interfax news agency said the loan will be interest-free until 2015, Interfax said, citing a package of measures proposed by the company to the government’s anti-crisis commission.
The report did not say where AvtoVAZ hoped to obtain the loans.
Some reports say new loan finance could come from the Russian government.
AvtoVAZ which is 25% owned by Renault, will cut up to 27,600 jobs, close to a third of its workforce, to help it reach “effective and profitable production.”
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By GlobalDataThe company employs 102,000 and made the announcement as separate data revealed that car output in Russia fell 62.6% year-on-year to 369,000 units between January and August.
