OREANDA-NEWS. On July 27, 2009 Russian Railways (RZD) received a US500 million loan from the European Bank for Reconstruction and Development (EBRD). RZD and the EBRD signed an agreement on 15 July 2009 on the provision US 500 million in credit, with a term of 10 years and a grace period of 1.5 years, at a floating rate of around 4% per annum, reported the press-centre of RZD.

Commenting on the deal, RZD President Vladimir Yakunin said: “We view the provision of this credit as part of the implementation of the EBRD’s policy of taking part in major Russian projects, aiding the integration of Russia into the European community and of RZD into the global transport system. It also shows that the reforms being carried out at RZD are heading in the right direction, and have the support of the international community.”

The RZD President said the company has had positive experience of cooperation with the EBRD over the past five years.

EBRD President Thomas Mirow said: “Our involvement in this project has given the EBRD a unique opportunity to provide real support to the rail sector reforms being carried out by RZD and the Russian government. We wholly support the readiness of RZD to fulfill, despite the economic crisis, its obligations in improving regulatory mechanisms and creating legal and economic conditions for the liberalization of the rail transport services market.”

The credit will be used by the company to optimize its debt structure.