The loans to Iran Electronic Development Company and to Irancell Telecommunication Company Services comprises the following four loans:
Loan 1: USD64 million (December 2009: USD62 million) attracting interest at LIBOR + 4% per annum (effective rate of 6%) (December 2009: effective rate of 8,48%) which will be capitalised against the loan. The loan has been advanced from Irancell Telecommunication Company Services to Iran Electronic Development Company.
Loan 2: USD194 million (December 2009: USD248 million) will attract interest at LIBOR + 4% per annum (effective rate of 7%) (December 2009: effective rate of 8,4%) which will be capitalised against the loan.
Loan 3: EUR95 million (December 2009: EUR103 million) will attract interest at EURIBOR + 4% which will be capitalised against the loan (effective rate of 7%) (December 2009: effective rate of 9%).
Loan 4: EUR85 million (December 2009: EUR82 million) will attract interest at EURIBOR + 4% which will be capitalised against the loan (effective rate 10%) (December 2009: effective rate of 8,3%).
The above loans and capitalised interest were in terms of the original shareholders’ loan agreement and repayable as follows:
Loan 1: The loan and capitalised interest was payable by August 2009.
Loan 2: The loan and capitalised interest was payable by November 2009.
Loan 3: The loan and capitalised interest was payable by 31 May 2008.
Loan 4: There were no fixed repayment terms.
MTN Group management have renegotiated the repayment terms of these loans in the current year as follows:
Loan 1: The loan and capitalised interest is payable in 2011.
Loan 2: The loan and capitalised interest is payable in 2014.
Loan 3: The loan and capitalised interest is payable in 2011.
Loan 4: The loan and capitalised interest is payable in 2011.
Loans 1, 3 and 4 have been classified as current receivables and Loan 2 has been classified as non-current receivables.

The remaining shareholder of MTN Irancell has provided its shares in the company as security for the above loans.

The recoverability of the loan was assessed at reporting date and was not found to be impaired.

The loans are registered with the organisation for Investments Economic and Technical Assistance of Iran (OIETAI) under the foreign investment licence obtained by the company and which is covered by the foreign Investment Promotion and Protection Act (FIPPA).