Following the announcement of 12 November 2010, RomReal announces that the all the documentation for the EUR 11.6m Alpha bank loan is concluded and signed and interest for the same period is paid in advance. The loan is extended for two years with new maturity date 30 November 2012
According to the present liquidity budget, RomReal has sufficient cash today to continue operations until the maturity date without any new disposals and additional cash from other sources.
Kay Thorkildsen, RomReal CEO said:
"The Romanian real estate market continues a low volume activity with no visible improvement during the fourth quarter of this year.
In this context, Romreal has released some of the value of its investment portfolio by divesting one of its plots. The proceeds were used to partially repay the loan to Alpha Bank and through negotiations, the lender has agreed to extend the maturity of the loan. The Company's strategy remains in line to its commitment for a further consolidation of the cash position through asset divestment.
The macroeconomic indicators published by the National Bank of Romania show a marginal improvement in the industrial output and labour productivity whilst there is an impressive increase of 27% in exports compared to 2009. This can be a sign that the country might be in the right path of recovery through its recently applied austerity measures. "
For further information please contact:
Harris Palaondas
RomReal Investor Relations
+40731123037