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February 17, 2000

Bigger money - lesser problems

In the middle of the last year "Nizhnekamskneftekhim" turned out on the edge of bankruptcy: payables exceeded total value of the fixed assets. In that situation the government of Russian Federation made advances to the petrochemical giant and restructured its debts to the republican budget in the amount of 290 million rubles for 5 years.

In the beginning of February "Nizhnekamskneftekhim" was the first of Tatarstan enterprises that managed also to agree the restructuring of its debts in the amount of 250 million rubles to the federal budget for the period of 10 years. Principle debts are planned to be covered during first six years, penalties and fines - during next four years.

Due to the restructuring the financial and economic status of "Nizhnekamskneftekhim" became much better, said Vladimir Busygin, General Director of "Nizhnekamskneftekhim", in his conversation with "ViD" reporter.

- Currently we are making payments to the budgets of all levels as well as to the budget funds. We have settled current payments with gas and power companies. Last year we reduced our debts to these companies by 200 million rubles.

- "Nizhnekamskneftekhim" owes 296 million rubles to "Tatneft" and, according to the opinion of its general director, its just a one month lag in the payments for direct flow petrol. Now petrochemists are paying to the oil companies with cash. The volumes of oil delivery to "Nizhnekamskneftekhim" are also defined. This year the volume will be 5,6 million, the rest will be covered with the direct flow petrol from Ufa oil processing plants.

This year "Nizhnekamskneftekhim" is not only planning to repay debts but also to continue its efforts on technical reconstruction of production both using its own funds and attracted loans.

"Nizhnekamskneftekhim" has already repaid collateral invoice for the target loan in the amount of 115 million dollars received in 1997 from Citibank against a guarantee of E?imbank of USA for the period of 11 years. This loan was aimed at the purchase of equipment and the equipment is being already delivered to the enterprise.

"Nizhnekamskneftekhim" took a 20 million-dollar loan from Sberbank for the reconstruction of the ethylene plant. The first tranche in the amount of 5 million has been already received by petrochemists.

At the end of the last year "Nizhnekamskneftekhim" and "Ak Bars" Bank signed a General Agreement on the cooperation for the period up to 2004.

- We are going to attract the money of "Ak Bars" Bank, and the Agreement provides for the investments in the amount of 100 million dollars for several projects, mainly for the reconstruction of ethylene-450 plant. Due to this reconstruction we are planning to increase the output of the plant from 410 to 500 thousand tons of ethylene per year, - emphasized Vladimir Busygin.





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