The Khreschatyk bank, one of the main banks in Ukraine, provided a loan of HRN 30 million to the Kyivvodokanal water company (Kyiv) for increasing its floating capital.

This is reported in the Kyivvodokanal water company's letter to Kyiv's Mayor Leonid Chernovetsky, a text of which was obtained.

The loan agreement was concluded on March 3, 2010.

According to the loan contract, the interest rate of the loan is 25% per annum. The loan was supplied until May 5, 2010.

The loan was secured with buildings with a total of 16 m2 of space at the Bortnychi aeration station, which is situated at 1, Kollektorna Street.

Kyivvodokanal noted that the loan enabled it to purchase the reagents necessary for purification of drinking water and launch operation of its Rosa-300 pumping station, which pumps water from River Desna into the Dniprovska water station, in March.

According to Kyivvodokanal, it received the loan because the Kyiv municipal administration's main department of finance refused to finance implementation of measures to prevent flooding.

In particular, Kyivvodokanal asked the municipal administration for HRN 13 million for financing these measures.

Kyivvodokanal admitted in the letter to Chernovetsky that it was searching for the municipal administration's assistance in repaying the loan because it cannot repay it alone because of its limited financial capabilities.

Therefore, Kyivvodokanal is searching to prolong the loan for 1 year under the existing terms.

Simultaneously, Kyivvodokanal dded it was seeking HRN 30 million from the municipal administration as compensation for the difference between the tariff it charges for water and sewage services and the actual cost of these services in 2010.

As it was earlier reported, Kyivvodokanal limited the pumping of water from River Dnipro for purification into drinking water in March as the quality of the water in the river deteriorated a result of mass death of fish.