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Loans granted with a sovereign guarantee to Mažeikių Nafta to be refinanced by Lithuania’s commercial banks

Date

2003 05 27

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Vilnius, 27 May, 2003. Lithuania’s commercial banks will take over the loans with a sovereign guarantee in the amount of USD 181 million extended by foreign lenders to Mažeikių Nafta. The opportunity for the Lithuanian banks to provide financial services to Mažeikių Nafta under equal competitive conditions with foreign banks was granted by the Republic of Lithuania Law on Borrowing to Finance Mažeikių Nafta AB and Issuance of Sovereign Guarantees to the Lenders as amended on 29 April by the Seimas of the Republic of Lithuania.

Upon approval of the proposal of the Ministry of Finance by the Government, loans with a sovereign guarantee granted to Mažeikių Nafta by PLC Yukos Oil Corporation of the Russian Federation, Limited Liability Company Yukos International UK B.V. of the Netherlands and the Japanese Bank of Tokyo Mitsubishi will be taken over by Vilniaus Bankas, Vilnius branch of Vereins – und Westbank AG, and Hansabankas.

Vilnius Bankas and Vilnius branch of Vereins – und Westbank AG have agreed to take the claim right to a USD 75 million loan with a sovereign guarantee over, which had been granted to Mažeikių Nafta by Yukos Oil Corporation, and the claim right to a USD 75 million loan with a sovereign guarantee, which had been granted to Mažeikių Nafta by the U.S. Company Williams International Company, and later transferred to Yukos International UK B.V. At present, the fixed annual interest rate payable by Mažeikių Nafta on the aforesaid loans is 10%.

The new lenders have agreed to take all rights and obligations under the agreements on loans with a sovereign guarantee over and have proposed to modify the interest rate providing that Mažeikių Nafta shall pay annual interest at a rate not exceeding USD LIBOR +1.1% on the loan of USD 150 million.

Hansabankas has agreed to take the claim right to a USD 50 million loan with a sovereign guarantee over, which had been granted by the Japanese Bank of Tokyo Mitsubishi in 1997, and has proposed to modify the interest rate on the outstanding amount of USD 31.6 million of the loan from the current 6-month USD LIBOR+2% to an annual interest rate not exceeding USD LIBOR +0.9%.

According to the Ministry of Finance data, the amount borrowed by Mažeikių Nafta on behalf of the State makes USD 323.9 million, and the loan amount with a sovereign guarantee comprises USD 246.4 million. The outstanding amount of the latter totals USD 200.5 million.