Odessa Municipal Council repaid Erste 10 million ($10.3 million) francs of the 40 million francs outstanding on the loan and refinanced the rest, the Austrian bank’s local unit said today in an e-mailed statement from the capital, Kiev.
Erste agreed to convert 15 million francs into hryvnia with an annual interest rate of 19.65 percent and cut the interest rate on the other 15 million francs by one percentage point to 7.5 percent, according to the statement. Odessa will make interest payments monthly and principle repayments quarterly and will clear the loan in full by Dec. 15, 2015.
Odessa borrowed 50 million francs from BNP for five years in 2007 at an 8.5 percent annual interest rate, data compiled by Bloomberg show. It repaid 10 million francs in December 2010.
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