Press Releases

Matáv announces the signature of a loan agreement with Deutsche Telekom on a short term Hungarian forint denominated loan

Budapest, July 7, 2003

Matáv has been granted a one year loan of HUF 126.6 billion effective from August 14, 2003. This loan will be used to refinance EUR 525 million of the expiring loan agreement that was used to the acquisition of the 49% Westel stakes at the end of 2001. At the end of March 2003, EUR 630 million of the EUR 920 million loan was still outstanding.

The new facility has favorable market conditions determined on an arms-length basis. The conditions are similar to those in the previous agreement. Matáv currently holds a BBB+ credit rating from Standard & Poor’s and Baa1 from Moody’s.