Citibank extends $100 million to Slovak Telecom

The state-run Slovak Telecom will receive a $100 million (3 billion Sk) syndicated loan from the huge American financial institution Citibank. The loan, with no government guarantee, bears 6.5 percent interest p.a., and is so far the most favorable loan for a Slovak company provided by a foreign bank. The loan agreement is to be signed in October on the condition that Slovak Telecom is transformed into a j.s.c. with 100 percent owned by the state. Funds from the loan will be used to finance part of Telecommunications Project II, requiring total investments of 48.7 billion Sk ($1.6 billion).