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Latvijas Dzelzcels to borrow EUR 31 mln for implementation of infrastructure modernization projects

BC, Riga, 16.07.2018.Print version
Joint-stock company Latvijas Dzelzcels (Latvian Railroads) has signed agreement on taking out a EUR 31 mln loan from OP Corporate Bank Plc. branch in Latvia, necessary for implementation of several infrastructure renovation and modernization projects of the company this year, informs LETA.

Latvijas Dzelzcels will have to repay the loan in seven years

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The company will use the funds for modernization of Riga and Daugavpils rail hubs to increase their throughput and safety, and renovate several tracks and rolling stock.


According to Latvijas Dzelzcels Vice President Aivars Straksas, the funding is meant for infrastructure projects that are part of the company's medium-term strategy and are included in the company's business plan.


Elmars Priksans, head of OP Corporate Bank Plc. branch in Latvia, said in turn that OP Bank was a reliable partner of Latvijas Dzelzcels, a company that is very important to the national economy of Latvia. "Modernization of railroad infrastructure will strengthen the freight transport, logistics and transport industries, and help Latvia integrate with global transit routes," said Priksans.


As reported, Latvijas Dzelzcels posted EUR 180.2 mln in turnover for 2017, down 6.4% from 2016, and EUR 800,000 in pre-tax profit.

 






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