ANNOUNCEMENT 28 Oct 2016
According to an official press report of the Eurasian Development Bank (EDB) dated 28 October 2016, it has opened a loan facility for Transtelecom. This company has a leading position on Kazakhstan's telecommunications market.
NUMBER OF INTERVENTIONS
1. Eurasian Development Bank
ЕАБР открыл кредитную линию АО «Транстелеком» (Казахстан) на 4 млрд
ЕАБР предоставит казахстанскому оператору Транстелеком кредит в $12 млн
The loan agreement is at the amount of KZT 4 billion (US $ 12.044 million). It was signed on 28 October 2016. The purpose of the funds is to finance Transtelecom's everyday business operations. They will allow it to provide data transmission services to the member companies of the Kazakhstan Temir Zholy Group and to launch a number of new projects, for example, the installation of IT infrastructure at Astana EXPO 2017 facilities and the development of IP/MPLS internal transport network.
The terms of the loan agreement between EDB and Transtelecom are not disclosed. However, according to the provided official press report of EDB, the cooperation with EDB allows Transtelecom to gain a competitive advantage over its foreign competitors because it "makes it possible for the company to expand the range of its services, as well as the scale and profitability of its operations, thereby promoting the advancement of Kazakhstan's economy".
Russia and Kazakhstan founded the Eurasian Development Bank (http://eabr.org/) in January 2006. The mission of this international organisation is to facilitate the economic development and the expansion of mutual trade and other economic ties in its member states. Currently, the member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. EDB's charter capital totals US $ 7 billion.
Transtelecom (http://www.transtelecom.kz/) is one of Kazakhstan's leading telecommunications operators, providing long-distance and local telephone services, Internet access, and optic communications. According to the second provided source, Transtelecom has established business relations with SaimaNet in the Kyrgyz Republic.
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.