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. Last Updated: 07/27/2016

Western Credit Buoys Tatneft Oil

ALMETYEVSK, Russia -- Russia's Tatneft oil company, recipient of a $75 million credit line from Western banks, said its crude production in 1996 would match last year's 24.1 million tons.

"It will be difficult but we will equal last year's production," Tatneft president Rinat Galeyev told a news conference Tuesday, saying that stabilizing output was an important goal for the company.

Unlike most leading Russian oil firms, Tatneft, located in the autonomous republic of Tatarstan, increased output last year, from 23.0 million tons. But in May it had forecast 1996 output would fall to 23.1 million tons.

The company also said it had a $75 million unsecured line of credit from a consortium of 10 Western banks led by Dresdner Bank AG of Germany.

Dresdner senior general manager Bernd Fahrholz said he believed the loan, an export pre-financing credit, was unique in Russia, with no guarantee and low interest rates. Another Dresdner manager said rates were at the bottom end of the world's uncovered risk rates, which he said was LIBOR plus 4 to 6 percent.