Borrowing against security of В"AzerboruВ" exceeds investments made by Targol

Business Materials 14 April 2006 16:21 (UTC +04:00)

Independent auditors invited by State Committee for Governmental property management to asses investment programs led by British Targol Investment on JSC В"AzerboruВ" are still working on it. Trend reports that Kerem Gasanov, head of the Committee, told journalists that preliminary assessments have proved the violation of investment obligation by investor.

According to the terms of investment program, Targol agreed to invest $50mln in Sumgayit tube-rolling mill. The monitoring has shown the direct investment of only $4.3mln instead of claimed $10mln.

Besides, Targol used the aforesaid enterprise as a security to get a credit at $6.9mln, which exceeds investments made in Azerboru, Mr Gasanov said.