Belagroprombank will provide the "Krasnaya Zvezda" paper mill with loans of almost 14 million euros under government guarantees

August 31, Minsk / Tatyana Chumakova - BELTA /. The Belarusian government has provided guarantees to OJSC "Belagroprombank" for the repayment of loans exceeding 13.8 million euros, which will be issued to OJSC "Paper Mill 'Krasnaya Zvezda'" (Chashniki, Vitebsk region) for an investment project to modernize the paper machine and the technological flow of pulp preparation. This is stipulated by Resolution of the Council of Ministers No. 1248 of August 27, 2010. As reported at the enterprise, thanks to the implementation of the investment project at the mill, the productivity of the paper machine will increase almost threefold to 80 tons of paper per day. The output of this product will increase by approximately half, and its quality will improve. The enterprise will fully meet its paper needs, and part of the production will be sent to the "Spartak" paper mill. The modernization of the machine will allow for the production of new types of paper. The majority of the products will be sold on the domestic market. The enterprise plans to commission the modernized machine in 2011. In accordance with the resolution, in 2010, the "Krasnaya Zvezda" paper mill will be reimbursed a portion of the interest for the use of loans from the republican budget. The condition for the reimbursement of a portion of the interest, as well as the targeted use of the funds received, is the fulfillment by the enterprise in the current year of the main indicators of the forecast of socio-economic development regarding the growth rates of industrial production volumes and the profitability of sold products, not lower than those set by the concern "Bellesbumprom". The document also notes that when forming the republican budget projects for 2011-2018, funds should be provided for the reimbursement by this paper mill of a portion of the interest for the use of loans. Control over the implementation of the resolution is assigned to "Bellesbumprom", the Ministry of Finance, and the State Property Committee. According to the resolution, the concern, jointly with the State Property Committee, will be required annually in 2011-2019, by April 1, to submit to the Council of Ministers draft normative legal acts on increasing the share of Belarus in the authorized fund of OJSC "Paper Mill 'Krasnaya Zvezda'" by the amounts of interest reimbursed in 2010-2018 for the use of loans. OJSC "Paper Mill 'Krasnaya Zvezda'" specializes in the production of paper, cardboard and corrugated cardboard, packaging containers, and water-dispersion paints for exterior and interior work. The mill was transformed into an OJSC in 1996. It is part of the concern "Bellesbumprom". It has a STB ISO 9001-2001 conformity certificate.