On April 9, 2013 in Rome, Italy, representatives of the JSC "Liepājas Metalurgs" as the borrower, with a participation of the Ministry of Finance and Treasury of the Republic of Latvia as the guarantor and consulting company Prudentia, met with the lending bank UniCredit S.p.A. and Italian Export Credit Agency SACE S.p.A. who insured the political risk of the Republic of Latvia (as guarantor) in this financing transaction. The goal for this meeting initiated by the JSC "Liepājas Metalurgs", was to explore restructuring possibilities with UniCredit and SACE concerning the outstanding loan guaranteed by the Republic of Latvia. The meeting was held in a positive and constructive manner. The participating parties discussed the current situation at the plant and those challenges it was facing - troubled steel industry (production overcapacity) and construction market (lack of demand) in Europe, specifics of the energy politics in Latvia leading to one of the highest electricity prices in Europe for industrial electricity consumers - were some of the topics discussed. SACE and UniCredit were inquiring on the government position concerning those challenges the borrower was going through and willingness of the State and government organizations (including Latvenergo) to provide support to Liepajas Metalurgs, assisting the company to overcome the severe crisis time and regain its sustainable position in the business. The bank and SACE showed their readiness to cooperate and upcoming steps were planned in order to progress with the debt restructuring.

On April 16, 2013, Prudentia and the Ministry of Finance will present to the Ministry Cabinet a business plan for the JSC "Liepājas Metalurgs" in order to discuss a State support for the company

JSC "Liepājas Metalurgs"

Līga Šenfelde
Assistant of chief Economist
63455926, shenfelde@metalurgs.lv