Kyiv city to raise UAH 350 m three-year credit with 14.8% per annum from Oschadbank

Kyiv city will raise a UAH 350 million three-year credit from Kyiv-based Oschadbank at 14.8% interest per annum, the head of the chief financial department of Kyiv City Administration, Volodymyr Repik, told reporters on Thursday.

"As of today, we've obtained proposals from two banks, and it was decided to select Oschadbank. The rate for the three-year credit is 14.8%," he said.

Repik said that the agreement is to be approved by Kyiv City Council. He said that there are questions regarding collateral.

"We would take the credit not at once – a credit line will be opened, which will be taken as soon as transport is bought. I expect that if not at the next Kyiv council session, then at the session that will follow it, the documents for ratification [of the credit agreement] will be ready," he said.

He also said that at present, tenders to acquire municipal transport are being held.

As reported, Kyiv City Council on October 6, 2011 decided to raise a domestic loan worth UAH 350 million to buy 77 trolleybuses.