MOSCOW, Sept 27 (Reuters) - AvtoVAZ, Russia's largest carmaker, intends to apply for a 10-year credit line worth 12 billion roubles ($399.2 million) to help compensate workers it has let go, Interfax news agency reported on Sunday.
The loan will be interest-free until 2015, Interfax said, citing a package of measures proposed by the company to the government's anti-crisis commission.
The report did not say where AvtoVAZ, which is part-owned by French car maker Renault, hoped to obtain the loans.
AvtoVAZ, maker of the Lada, has agreed with trade union leaders to slash a quarter of its workforce as the economic crisis has halved car sales in Russia.
AvtoVAZ could not be reached for comment on Sunday.
A source close to one of the company's shareholders, who declined to be identified, confirmed the numbers reported by Interfax and told Reuters the company planned to obtain the loans from the state.
AvtoVAZ has also said it will halve capital expenditure plans for 2010 through 2012 to around 42 billion roubles.
Last week, officials and sources at AvtoVAZ said the company planned to assemble Nissan's class 'B' cars at its production facilities by 2012.
Before the financial crisis, Russia had been on track to unseat Germany as Europe's largest car market.
(Reporting by Gleb Stolyarov and Amie Ferris-Rotman; Editing by David Holmes)
($1=30.06 Rouble) Keywords: AVTOVAZ/LOAN (amie.ferris-rotman@reuters.com, +7 495 775 12 42, Reuters Messaging: amie.ferris-rotman.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The loan will be interest-free until 2015, Interfax said, citing a package of measures proposed by the company to the government's anti-crisis commission.
The report did not say where AvtoVAZ, which is part-owned by French car maker Renault, hoped to obtain the loans.
AvtoVAZ, maker of the Lada, has agreed with trade union leaders to slash a quarter of its workforce as the economic crisis has halved car sales in Russia.
AvtoVAZ could not be reached for comment on Sunday.
A source close to one of the company's shareholders, who declined to be identified, confirmed the numbers reported by Interfax and told Reuters the company planned to obtain the loans from the state.
AvtoVAZ has also said it will halve capital expenditure plans for 2010 through 2012 to around 42 billion roubles.
Last week, officials and sources at AvtoVAZ said the company planned to assemble Nissan's class 'B' cars at its production facilities by 2012.
Before the financial crisis, Russia had been on track to unseat Germany as Europe's largest car market.
(Reporting by Gleb Stolyarov and Amie Ferris-Rotman; Editing by David Holmes)
($1=30.06 Rouble) Keywords: AVTOVAZ/LOAN (amie.ferris-rotman@reuters.com, +7 495 775 12 42, Reuters Messaging: amie.ferris-rotman.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
