EBRD to grant loans to three companies of Kazakhstan total of $160 mln

/IRBIS, Dec.3, 99/ - Almaty office of REUTERS informs that Kazakhstan and European bank for reconstruction and development (EBRD) signed credit agreements to grant loans to two national companies - $45 million to power network company KEGOK and $65 million to Kazakhstan Temir Joly (railroads), and $50 million to OJSC Kazakhtelecom. $45 million loan is planned to be used by KEGOK to improve the reliability and distribution of electricity, and will be used within five years beginning year 2000. Another $65 million is to be used by Kazakhstan Temir Joly to modernize railroads. The loans were granted under the guarantee of the government, therefore, it required signing of additional agreement between EBRD and Ministry of Finance of Kazakhstan. Only the last $50 million loan was granted without governmental guarantee to Kazakhtelecom to support telecommunications. "This is the biggest loan of Kazakhtelecom without governmental guarantee, hence it symbolizes trust of EBRD to the company", said the president of Kazakhtelecom Nurlan Sakipov. Kazakhtelecom is partially controlled by Kazkommertsbank, the biggest commercial bank of the country. EBRD granted "soft loans" to the companies for long term at LIBOR +1 percent, said the president of Kazakhstan Nursultan Nazarbaev while signing the agreements.