MOSCOW
The Russian government on Wednesday has passed a resolution guaranteeing the debts of troubled Transaero airlines.
The government has arranged for Bank VTB to make a three-year loan of nine-billion-ruble ($164.8 million) for the country's second-largest carrier with a 100 percent guarantee of the company's debts for a period of three to seven years.
Control of the funds provided by the guarantee will be exercised by the Ministry of Transportation.
The airline requested debt relief from the government on 21 December, claiming overdue loans in the amount of 4.5 billion rubles, or $109.2 million in terms of the exchange rate in November. The main creditors are the Russian oil company Rosneft, Gazprom Aero, and Moscow's Vnukovo airport.
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