MOSCOW, December 19 (RIA Novosti) -- Russia's state-controlled VTB bank has provided a 44.2 billion-ruble ($1.6 billion) loan to Alrosa, Russia's largest diamond producer, the bank said on Friday.
VTB said the loan had been granted for a term of 600 days to refinance the company's short-term foreign and domestic debts.
The producer earlier planned to pay off its debt by floating Eurobonds in November, but was forced to postpone the placement amid the ongoing financial crisis.
Alrosa is one of the world's largest diamond producers, which account for 25% of global diamond output. The company produced $2.37 billion worth of diamonds, and sold $156.2 million in 2007.
VTB is Russia's second-largest bank with operations in a dozen of countries. The government controls a 77.5% stake in the bank's authorized capital.
