Loan to ease HEP liquidity problems

摘要

The Croatian government approved May 31 a short-term loan of Kuna 400 million ($66.44 million) to state power company Hrvatska Elektroprivreda (HEP) to enable the company to meet its commitments this year. The loan was provided by a syndicate of three banks to the government for onward lending to the state-owned utility. HEP will receive the one-year loan at a minimum annual interest rate of 6.5% from Hrvatska Postanska Bank, Privredna Banka Zagreb and the Croatian subsidiary of Raiffeisenbank Austria."HEP Group was meeting all of its commitments to suppliers until the start of March 2012, when the company starting facing problems in paying suppliers. The reason for the lack of liquid assets in the first quarter of the year is linked to the abnormal drought and cold spell in February. Monthly bills for fuel and the costs of imported electricity practically doubled in January and February 2012," the government said in a statement.