A lending facility agreement worth US$18.7 million for a 10-year term was signed in Moscow on 30 January 2003 between Vneshtorgbank and a syndicate of Slovenian banks to finance the rebuilding of Moscow-based Budapest Hotel.
Participants of the syndicate are:
· BANK AUSTRIA CREDITANSTALT D.D., Ljubljana;
· SKB BANKA D.D. (a Societe Generale Group member);
· SLOVENSKA IZVOZNA DRUZBA D.D. (Slovene Export Corporation).
Slovene Export Corporation will provide insurance coverage under the facility.
85% out of the first rebuilding stage of Budapest hotel will be financed by this Slovenian banking syndicate for an aggregateount of US$22 million, while Vneshtorgbank will fund the remaining 15%.
The total two-stage rebuilding project will cost about US$70 million. Slovenian Riko Group will be the prime contractor under the project, which is supported by the Moscow City Government.
Mr. V. Dmitriev, Vneshtorgbank Vice-President and Deputy Chairman (on the right), and top officials from syndicate participants and Slovene Export Corporation took part in the signing ceremony.