Austrian bank extends $35m revolving credit line for Belarusian BMZ

GOMEL, 6 February (BelTA) – UniCredit Bank Austria AG and OAO BMZ, the managing company of the holding company BMC, have signed an agreement on extending a $35 million revolving credit line for the benefit of the Belarusian company, the press service of Belarusian Steel Works (BMZ trademark) told BelTA.

The availability of guaranteed financial resources from a major European bank will allow BMZ with its vigorous export operations to make timely transactions with foreign partners and choose the most suitable time for using the available money tranches. The Belarusian company will be able to get new credit disbursements right after repaying previous ones.

BMZ and UniCredit Bank Austria AG started cooperating in 2009 when the sides signed a $10 million credit agreement to finance purchases of raw materials. The reputation of the Belarusian company in the international business community, the company's premium-class borrower category and wise actions of the management in 2010 increased the limit of financing up to $25 million and up to $35 million later.

During negotiations the two sides also discussed the performance of the Belarusian company in 2014 and plans for consequent years. The management of the Austrian bank declared its intention to continue cooperating with Belarusian Steel Works despite the complicated political, financial and economic situation in the world. As a confirmation of the intention the sides signed agreements to extend the credit lines available to the Austria-based company Belmet Handelsgesellschaft mBH, which is a joint venture and a distributor of BMZ products. The borrowed money is used for the pre-shipment financing of BMZ metal exports.

Founded in 1984, the public joint-stock company OAO Belarusian Steel Works (BMZ trademark) is the managing company of the holding company BMC. The enterprise specializes in cast bars, profiled iron, rolled steel, reinforcing bars, metal cord, wire for high-pressure hoses and other kinds of wire. The company employs over 12,000 people. BMZ products are shipped to more than 60 countries.