ANNOUNCEMENT 25 Jan 2016In January 2016, the government of the Russian Federation announced a change in private-sector financial support.
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An official press report of the state Eximbank of Russia dated 25 January 2016 contains information concerning the loan agreement it concluded with PhosAgro, a leading Russian phosphate-based fertilizer producer.
The loan is at the amount of 3 billion RUB (ca. 37.23 million USD as per the official USD/RUB for 25 January 2016). Its maturity is 18-months. Eximbank of Russiahas taken the decision to lend to PhosAgro as part of Russia's state programme to support high-tech production and exports.
The CEO of PhosAgro, Mr Andrey Guryev, said, 'This loan agreement will enable us to strengthen the flexibility of our sales and improve PhosAgro's competitive advantages in the global fertilizer market, as well as the turnover of our financing resources. We have reached an agreement on exceptionally attractive terms '...'.'
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.