Chernivtsi: the Calculation of the loan from EBRD for the project "Updating of trolleybus Park"
Financial resource that will be allocated to the project "Updating of fleet electric vehicle of Chernivtsi" is 9.5 million euros, of which credit funds amount to 8.0 million Euro grant 1,0 million Euro local contribution of 0.5 million euros. In addition, the Bank through its own grant funds provides technical Advisory services – 0.3 million euros (support the organization of procurement procedures, program development, corporate development, etc.). These funds are offered by 8.4 million euros to purchase trolleys, by 0.6 million euros to modernize depot and buy a repair equipment, 0.5 million Euro to spend on replacement of damaged sections, the trolleybus network. The loan amount is EUR 8.0 million, loan term – 12 years, grace period – 2 years. The repayment of the loan will last for 10 years, during which time the loan must be repaid in semi-annual payments 20 payments 400,0 800,0 thousand euros or thousand euros per year (equivalent in UAH – 24,0 mln. per year). The interest rate for borrowed funds: the 6-month Euribor rate plus a margin (of 7.00% per year, with the possibility of reduction depending on the credit rating of the city, and the achievement by the Borrower of indicators of financial ratios, satisfactory to the Bank, but not less than of 4.00%). Because 6-month Euribor rate in 2016, had a negative value (according to the official website ÅURIBOR. RATES.EU) for calculating the interest rate is taken to zero. That is, the percentage that we need to pay on the loan remains at 7%. International rating Agency Fitch Ratings has upgraded the credit rating of Ukraine from “CCC” to “B-”, which gives the possibility of reducing the margin of 6% in the case of ordering the credit rating of the city. Credit transaction provides for the payment of the following commissions: Commission for opening of loan 1% of loan amount or 80,0 thousand euros; The fee for the reservation of 0.5% of the loan amount for the unused part of the loan. According to preliminary estimates, in 2017 – 30, 0 thousand Euro in 2018 – 10,0 thousand Euro. The interest rate for late fulfillment of obligations – 2 % per year in addition to the margin and the volume of overdue obligations. The Commission for early repayment is 1%. Thus, in the first year, in the case of a loan, you need to pay a fee for opening a loan 1% of loan amount or 80,0 thousand euros. If in 2017 we choose only half of the loan, i.e. EUR 4 million, payment for the use of this credit will amount to 4 million euros x 7% /360 days x 180 days = 139,9 thousand euros . In addition, it must pay 0.5% for undrawn funds . This is about 20 thousand for the first half and 10 thousand – for the second half, in General – 30 thousand euros. That is, in 2017 for this loan the city must pay 250 thousand euros, which is affordable. In the second year when the second part of the loan, the payment will amount to 480 thousand euros. The highest amount of payments to almost 42 million UAH ( 1.4 million euros) accounted for 2019, when it's time to repay the loan. Next year this amount is steadily decreasing. In addition, you may early repayment of the loan. The Commission for early repayment is 1% or 80 thousand euros. Thus, over the 12 years of the loan, taking into account the grant component, the overpayment will be 2.5 million euros. The conclusion about the possibility of the city budget to pay off the loan the EBRD is providing the Ministry of Finance of Ukraine. If the output is negative, a credit transaction on the strength can not start. This was reported in the Chernivtsi city CouncilÏåðåâåäåíî ñåðâèñîì "ßíäåêñ.Ïåðåâîä÷èê": translate.yandex.ru.
Source: http://uzinform.com.ua/
