CREDIT POLICY IS DIRECTED TO REDUCING BORROWING IN ORDER TO SUPPLEMENT WORKING CAPITAL AND TO IMPLEMENTING A MECHANISM FOR ATTRACTING INVESTMENT FOR THE MEDIUM-TERM FUNDING OF DEVELOPMENT PROJECTS.
During the year 2000 the Company reduced its borrowing from 4.9 billion roubles to one billion roubles. Loans for specific purposes were provided to RAO "UES of Russia" by the International Bank for Reconstruction and Development in accordance with decision of the Government of the Russian Federation.The funds are used by RAO "UES of Russia" to fund measures relating to the restructuring of the Company in the context of state policy on the reform of the natural monopolies. Following the significant improvement achieved in the Company's credit-worthiness, from the second half of 2000 negotiations were renewed with major Russian and foreign banks on borrowing against the security of export revenues at most reliable client rates for periods of up to five years in order to carry through significant investment projects.
RAO "UES of Russia" CREDIT PORTFOLIO AS OF DECEMBER 31,2000.
| Lending bank | Contractual value of loan | Date of receipt | Outstanding debt at 31.12.2000 |
| Sberbank of the RF | 980.0 mln roubles | 18.12.00 | 961.2 mln roubles |
| International Bank for Reconstruction and Development | 5.39 mln dollars | 13.06.97 | 1.52 mln dollars |
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