Russia's GAZ Gets Up To RUB20 Billion In State Guarantees -Sources
07 Juli 2009 - 6:28PM
Dow Jones News
Russian automaker OAO GAZ Group (GAZA.RS) has received state
guarantees of up to RUB20 billion ($635 million) for its loans,
people familiar with the matter told Dow Jones Newswires
Tuesday.
The issue of state support for the indebted automaker was
discussed Tuesday at the government's anti-crisis commission
meeting. There was no official confirmation of the decision.
GAZ is controlled by Russian tycoon Oleg Deripaska's holding
company Basic Element.
One person familiar with the situation said that Deripaska, who
also controls aluminum giant United Company Rusal, discussed the
issue of GAZ with Russia's Prime Minister Vladimir Putin late
Monday. The person couldn't provide further details of the
meeting.
GAZ, which was hit hard by the sharp drop in demand for cars in
Russia, has already received RUB4 billion state guarantees for
loans.
GAZ made about a $108 million loss in 2008 under Russian
accounting standards. As of the end of March, its debt stood at
about RUB45 billion
GAZ has teamed up with Russian state-controlled OAO Sberbank
(SBER.RS) and Canadian auto supplier Magna International Inc. (MGA)
in a bid to buy Adam Opel GmbH, the German unit of General Motors
Corp.(GM)
-By Alexander Kolyandr, Dow Jones Newswires; +44 20 7842 9410;
alexander.kolyandr@dowjones.com