Vedomosti – Renault will provide AVTOVAZ 20 billion rubles (nearly €268 million at the exchange rate of the Central Bank – Vedomosti) until 29 December 2016 at 11.5% per annum, as stated in the materials prepared for the annual meeting of AVTOVAZ shareholders. The meeting is scheduled for 23 June. The money is needed to pay for auto components, according to the materials.
In 2015 and during the first months of 2016, AVTOVAZ has delayed the component payments for long periods of time, up to 100-150 days, as told by one of the contractors of the company. The situation has improved towards June, according to the contractor, the repayment periods declining to around 80 days. “However, it’s still too long” he stated: “not many component manufacturers can afford to wait for nearly three months”.
AVTOVAZ had also received loans to pay for debts during the 2008-2009 crisis, including the money owed to the suppliers. At the time, the government provided an interest-free loan of 75 billion rubles to the company, through Rostech. Renault also helped AVTOVAZ, by allocating €126 million since 2012. The money, however, was necessary for the modernisation of the factory, especially the B0 line in Tolyatti, where car production is made for Renault-Nissan Alliance and Lada.
The AVTOVAZ representative did not answer the questions of Vedomosti. The Renault representative, on the other hand, has explained that the decision to allocate 20 billion rubles loan has been taken, in case AVTOVAZ faces difficulties in attracting external funding. The loan will be given, when such a situation occurs, he added.
