1.3.2004
At the end of February, OSINEK, a.s. the majority owner of VÍTKOVICE STEEL, a.s. paid back to the account of the Czech Consolidation Agency another 200 million crowns from the loan used for financing of engineering contracts of the Vítkovice, a.s. holding.
This is the second installment of a loan of approx. 630 million crowns which Osinek used for purchase of raw materials and guarantees for the engineering part of Vítkovice. The Ostrava-based subsidiary of the National Property Fund paid back the first 70 million crowns to the State-owned Czech Consolidation Agency before the end of the last year.
The financial exposure of Osinek in Vítkovice dropped down to the current level of 360 million crowns. With respect to the agreed regime of terminating the tolling financing of Vítkovice, these resources are allocated to the engineering contracts currently being completed.
The process of terminating the inflow of the State resources into Vítkovice is associated also with considerable reduction in the amount of the creditor’s declaration issued by the National Property Fund. This creditor’s declaration ensures that in case Osinek does not pay back the debts to the Czech Consolidation Agency, the Fund would need to pay the loan back. So, together with the payment of the debt by Osinek to the Czech Consolidation Agency the debt of the National Property Fund is also reduced and the reduced debt will be reflected in total payables of the State.
Over the period of approx. 4 years (starting in summer 2000), Osinek was financing engineering contracts of Vítkovice for more than four billion crowns. Osinek gradually used and paid back up to 700 million crowns for financing of raw materials, and guarantees.
