Euroset ready for crisis, pundits say

Russia's major mobile retailer Euroset has contracted a three-year RUB 3bn (approx. USD 93.14m) loan with state-owned Sberbank at a 10% interest rate, RBC Daily reported today, citing sources within the financial industry.

      Negotiations on this loan were initiated back in 2009 and were initially focused on refinancing Euroset's debts, a source close to the retailer told RBC Daily, adding that now the company's cash flow is sufficient to finance its day-to-day operations. "With the crisis looming any competent company is seeking to diversify its loan portfolio. It's a way of saving money for a rainy day," the source pointed out.

      According to experts, major mobile retailers, such as Euroset and second largest player Svyaznoy, are better prepared to face the crisis than in 2009. "Only the few small regional players that are still in the game should be concerned about the crisis. Over the last three years the mobile retail industry has gone through a massive consolidation," Eldar Murzatin from Mobile Research Group noted.

RBC