The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) has announced that, owing to its stable financial performance, it has almost fully redeemed the loans provided by Russia's state-owned Bank VTB, which were partially guaranteed by the state. The value of the state guarantees was Ruble 30.75 billion (about $996 million).
"The state guarantees helped us maintain financial stability, complete the existing investment projects and start new ones," Metalloinvest CEO Eduard Potapov said. "Opportune support by the government and Bank VTB allowed us to exit the recession...Today, Metalloinvest demonstrates a stable financial performance and has all the resources necessary to develop production and service corporate dept independently," Mr. Potapov added.
In September 2009, a state commission approved state guarantees to Metalloinvest's subsidiaries Lebedinsky GOK, Mikhailovsky GOK, Oskol Elektrometallurgical Plant (OEMK) and Ural Steel, totaling Ruble 30.75 billion. The state guarantees backed credit lines from Bank VTB, which were opened in September 2009 and totaled Ruble 61.5 billion (about $2 billion).