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State Won’t Index Salaries
The government will not index the salaries of employees paid from the budget, such as doctors and teachers, to inflation next year, Deputy Prime Minister Alexander Zhukov said Wednesday.
Given the high inflation rate, expected to hit at least 12 percent this year, and relatively low current payments, the decision is likely to breed broad public discontent.
“As far as increasing spending on salaries, it needs an especially careful approach in 2010,” Zhukov said at a meeting dedicated to the federal and local budgets in Smolensk, Interfax reported. If federal budget revenues exceed current estimates, the decision may be revised, he said. (MT)
Big Loan Offer for Opel Bid
BERLIN — Germany’s economy ministry said Wednesday that the country was prepared to make 4.5 billion euros ($6.35 billion) in credit available to the Magna and consortium, which is in a bidding war to take over carmaker Opel.
The ministry confirmed comments by Deputy Economy Minster Jochen Homann, saying the German government had informed General Motors that it would take on the full burden of the necessary credit to avoid lengthy talks with other European nations that host factories of Opel or GM Europe.
Homann, a member of Germany’s negotiating team for Opel, told the Frankfurt Allgemeine Zeitung daily that in addition to the 1.5 billion euros in credit already handed out to Opel, the federal government and four German states where Opel has factories would pool together to offer the remaining 3 billion euros. (AP)
TMK Borrows $450M
TMK has taken out a $450 million loan from Bank, the pipe maker said in a statement Wednesday.
TMK will use the loan to refinance $600 million in three-year notes issued in July 2008, it said. (MT)
VEB Seeks $500M Abroad
State lender VEB is in talks with international lenders to raise about $500 million, three people familiar with the situation said.
The bank may pay interest of between 350 basis points and 400 basis points above the London interbank offered rate for three-year loans, said the people, who declined to be identified as the talks are private. (Bloomberg)
St. Pete Investment Falling
St. Petersburg lured 33.5 percent less foreign direct investment in the first half as the credit crisis deterred investors, the city said Wednesday.
Direct foreign investment fell to $358.7 million, the municipal government said in a statement. Overall foreign investment, including credits and flows into the securities markets, was $1.5 million, or 33.1 percent less over the year-ago period. (Bloomberg)
Ukraine Gas Transits Down
Ukraine’s shipments of gas to Europe slowed in the first seven months of this year as the global economic downturn reduced demand, the Fuel and Energy Ministry said Wednesday.
The nation shipped 37 percent less Russian gas from January through July, compared with the same period a year ago. Gas transit via Ukraine’s pipelines fell to 47.8 billion cubic meters from 75.7 billion in 2008, according to the statement. (Bloomberg)
