Southern Telecommunications Company signed a credit agreement with ORGRESBANK
Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District reports that according to the Decision of the Company’s Board of Directors of 10 November 2008 (Minutes № 11 of 10 November 2008) UTK signed a credit agreement with ORGRESBANK (Open Joint-Stock Company) for 55.5 million Euro repayable in two years. The interest rate on the loan is three-month EURIBOR + 4%.
Alexander Dobryakov, Deputy Director General –Director for Economics and Finance of Southern Telecommunications Company said that the funds raised would be forwarded to finance the Company’s current operations.
