Romanian "Cuprom" to take credit in amount of 600m USD for procurement of RTB "Bor"

- Romanian company "Cuprom" will take a loan in amount of 600m USD for the procurement of Mining Smelting Basin (RTB) “Bor” and the investment in it – said the representatives of "Cuprom".

- We will pay 400m USD for the procurement of RTB. The contract we signed stipulates that we have to invest 180m USD in that company within next four years. As a guarantee for the loans approved by banks Merrill Lynch and Citibank, 30 - 40% of property of RTB will be offered and that property can be used for these purposes – said the owner of company "Cuprom" Horia Simu.

He claims that "Cuprom" did not get any benefits from the Government of Serbia for the procurement of RTB. It did not even obtain the priority in the procurement of companies that use raw materials from RTB in their production. Simu announced that "Cuprom" wanted to buy some other Serbian companies and that it had already sent the letter of intent for the procurement of Novi Sad-based "Novkabel".

Simu estimated that 8-10 years would be needed for the paying off of the investment in RTB, but he is of the opinion that that was a good business move of "Cuprom" on long-term basis. The new owner of RTB will keep all workers – 4,524, and those who want to leave the company will get the severance pays in amount of 400 EUR per year of work.