State-owned power utilities from Greece and Montenegro – Public Power Corporation (PPC) and Elektroprivreda Crne Gore (EPCG), have secured loans in the amount of EUR 210 million to absorb the challenges presented by the coronavirus pandemic.
The loans, approved by the European Bank for Reconstruction and Development (EBRD), will enable the companies to continue to deliver vital services in the situation where their revenues are much lower than usual.
PPC will get EUR 160 milion and EUR 50 million was earmarked for EPCG
According to the bank, it is providing a senior unsecured loan of up to EUR 160 million to PPC.
The facility will support PPC’s working capital needs at a time of customer payment volatility following the outbreak of the crisis, and ensure the stability of essential utility supplies and maintaining the momentum towards decarbonisation, the EBRD said on its website.
On the other hand, the EUR 50 million loan for EPCG will help ensure the stability and resilience of the energy supply in the country while protecting the achievements made by the Montenegrin energy sector in its decarbonisation agenda.
PPC: We aim to shield the company against the possibility of a new pandemic wave
The loans come under the EBRD’s Vital Infrastructure Support Programme.
EPCG: We want to ensure the sustainability of planned investments
PPC Chairman and CEO George Stassis said that despite initial disruptions to liquidity at the outset of the pandemic in March, the company has succeeded in regaining pre-Covid-19 levels since May.
“We aim to shield the company against the possibility of a new pandemic wave,” he added.
Branislav Pejović, EPCG’s CFO, said the company wants to safeguard its operations and ensure the sustainability of our planned investments.
The company’s shareholders decided against dividend payment for 2019. The EUR 28.3 million profit for 2019 won’t be distributed.