Astra gets $10m from BCR

Astra Ploiesti Refinery will mortgage its entire patrimony of land and buildings worth 160bn ROL and product inventories worth 350bn ROL to secure a $10 million (330bn ROL) banking loan. This is the second mortgage on the assets, though. The loan is supposed to come from Banca Comerciala Romana (Romanian Commercial Bank – BCR); Astra will use this money to pay for raw materials. The company management could not be reached for comment on the matter at hand. Last year was a critical time for the company’s cash flow. Early that year, the refinery was announcing a halt in production due to a Government Ordinance on excises and compensations. A restructuring programme followed and shed nearly 600 jobs, so that only 1,230 employees were left by the end of last year. Profit in 2002 was worth only 10% of the previous value and, for the first time since its listing on the Stock Exchange, the company did not distribute any dividends. ZF