IDC says lower interest rate on Gupta loan not political issue
THE Industrial Development Corporation’s (IDC’s) controversial decision to restructure its loan to one of the Guptas’ Oakbay companies was not politically motivated, CEO Geoffrey Qhena said on Tuesday.Qhena’s comments were incorporated in a reply by Economic Development Minister Ebrahim Patel to a parliamentary question by DA spokesman on economic development Michael Cardo.Cardo wanted to know why the IDC had restructured its interest in the Oakbay mining company at a reduced interest rate of prime plus 2%."The restructuring was done … on commercial terms," said Qhena.He explained that the original R250m IDC loan was expected to be fully repaid.A total R137.5m had already been received to date, and was R112.5m outstanding as at April 2016.The next instalment of R37.5m was payable by the end of June and the full capital by the end March 2018.The interest of R257m, from April 14 2010 to May 31 2014, was converted into shares when the entity was listed (at a 10% discount to the listing...
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