700m EUR for procurement of stocks of Telekom Srpske - "Telekom Srbija" and "Citibank" signed contract on credit

(Sadžad Razvi and Draško Petrović)

Draško Petrović, General Manager of "Telekom Srbija", and the representative of "Citibank", Sadžad Razvi, signed the contract yesterday (May 30, 2007) in Belgrade on credit in amount of 700m EUR, which will "Telekom Srbije" use to pay 65% of stocks "Telekom Srpske".

- Terms of the credit arrangement are very favorable, especially when having in mind that the guarantees are not stocks of "Telekom Srbija", but exclusively our business plan, which points to the fact that the creditor has faith in the work of our company. That is also a signal that the development of our economy is on the rise – said the General Manager of "Telekom Srbija", Draško Petrović.

According to his words, with the procurement of stocks of "Telekom Srpske" and with the investments in Montenegro, "Telekom Srbija" starts to create large telecommunication network in the region, which reinforces competitiveness of the company on the market.

The representative of "CitiGroup", Sadžad Razvi, pointed out that the crediting of "Telekom Srbija" set new standards for Serbian companies that wanted to take loans. Total of 21 banks participated in the collecting of the loan, among which are Greek Alpha bank, EFG Private bank from Luxembourg and Piraeus bank with the headquarters in London.

The credit will be paid in three installments. The repayment period for the first installment of 300m EUR is five years with the grace period of two years and interest rate of 1.5% on annual basis. The second installment of 100m EUR will be revolving credit on five years, with the same interest rate. The third installment of the credit, in amount of 300m EUR, will be approved with the repayment period of two years and interest rate of 1.15%.