The board at main power utility PPC is today expected to endorse a 200 million-euro loan offered by the country’s four main banks at an interest rate of 5.8 percent.
Factors such as negotiations concerning the loan’s interest rate, the establishment of a special account absorbing PPC client payments, as well as guarantees, delayed the loan process.
The banks had initially offered an interest rate of 6.25 percent. As for the special account into which payments by major PPC clients will be transferred, the state-controlled utility has been granted control of the money transfers.
However, if the loan is categorized as a non-perfoming loan at any point, supervision of this special account’s balance will immediately be granted to the banks.
PPC needs to cover the payment of a 200 million-euro bond set to mature in April.