Greece’s OTE gets loan approval

OTE, Greece’s biggest telecoms company, got shareholder approval to seek loans from its parent company Deutsche Telekom as part of efforts to reduce borrowing costs. Shareholders yesterday granted management the right to conclude debt agreements with Deutsche Telekom under financial terms and conditions equal to or better than those offered by a third party, OTE's chief executive officer Panagis Vourloumis said.

This move would allow OTE to obtain cheaper funding as Greek companies' borrowing costs rise amid the country's financial crisis. No decision has been taken yet to actually conclude such a loan with Deutsche Telekom, Vourloumis said. OTE has total debt at about twice its EBITDA, Vourloumis added.