TGK-2 counting on state support as systemically important enterprise - company head
MOSCOW. Feb 19 (Interfax) - The financial position of OJSC TGK-2 after 2014 remains difficult due to the situation with the Russian economy and the increase in credit rates, and the company is counting on state support as a systemically important enterprise, the company's CEO Andrei Korolyov told journalists.
"The business plan probably will not be fulfilled. This happened due to an increase in the cost of credit resources and I don't think that there will be a rollback. For Q1 we will already pay raised interest rates," he said, adding that all credit liabilities of the company are denominated in rubles, loans issued at fixed interest rates. He estimated the total debt to VTB , Gazprombank and for licensing payments at 17 billion rubles.
The head of the company is expecting that in 2015 TGK-2 will post small operating losses.
"There will be operating losses, but they will be insignificant. If we conduct an M&A deal with our Chinese partners, then we may break even because of this. However operating activity will be loss-making due to the increase of interest rates at banks. The rate has already been raised unilaterally to 19.5% for us," Korolev said.
The company was included by the Russian government on the list of 199 systemically important enterprises, which may be given anti-crisis support. As such support, Korolev named necessary measures for the company - help with the receipt of loans and subsidies for interest rates, and their decrease.
"In order to replenish working capital, the debt burden of the company could be increased by 1 billion-3 billion rubles, this is in the interests of the company," he said, noting that the acceptable lending rate in this case should equal 12%. The rate, which allows for justifying investments in the implementation of projects for the modernization of generating capacities, should be the same as the European rate, that is, at about 2%.