"Telekom Srbije" settled its obligations towards "Telekom Srpske"

"Telekom Srbija" has successfully settled all the obligations from the contract on 700m EUR worth of credit arrangement for purchase of 65% of stocks of "Telekom Srpske".

The payment of the first part of obligations of 110m EUR was made in December 2008, while 225m EUR worth of obligations that were due on Tuesday were partially paid from the sources of "Telekom" (75m EUR), and 150m EUR were refinanced by signing of the new loan contracts.

The amount of 120m EUR has been provided through the international loan with Alpha Bank as the coordinator and EFG Eurobank as the agent, and creditors - Alpha Bank, EFG Eurobank, the National Bank of Greece, Piraeus Bank, Societe Generale Bank and Commerzbank.

The rest of the funds (30m EUR) has been provided from the loan approved by Banca Intesa in Belgrade.

Another 35m EUR worth of obligations will be due at the end of November, and "Telekom Srbija" will settled them from its own sources.

People in "Telekom" point out that the terms of new arrangements for refinancing of part of the obligations are very favorable in spite of the current circumstances in the financial market.