WAN and MDLF have approved a loan of up to 180,000 Euros to Altapress, based in Barnaul in the south of Western Siberia, to upgrade its printing equipment. WAN, the global association of the world’s press, and MDLF, a non-profit organisation providing low cost financing to news businesses in developing countries, created the INDI fund to provide low-interest loans to independent media companies in developing democracies to help them become financially viable businesses.

The loan announcement was made at the World Newspaper Congress and World Editors Forum, the global meetings of the world’s press, which drew more than 1,300 newspaper executives from 81 countries to Seoul, Korea, this week.

"The loan will enable us to enhance the quality and capacity of our printing capabilities and so contribute towards the company’s economic independence and financial stability," said Yuri Purgin, the CEO of Altapress. "Not only will it improve the production quality of Altapress publications, it will allow us to compete on equal terms with state printers in the region."

Timothy Balding, Director General of WAN, said: "We think this is a great first loan for the Independent Newspaper Development Initiative. Both WAN and MDLF know the company well. It’s a real example of an independent newspaper group which could go even further in its development with such support."

Sasa Vucinic, MDLF Managing Director, said: "We are delighted to provide this loan to Altapress and to support the company’s development into the leading publisher in the Altai region. By funding projects such as this, INDI can make a real difference to the prospects of independent newspapers in transitional countries."

Three journalists left Barnaul’s state newspaper in 1990 to set up Altapress, the publisher of the first independent newspaper Svobodnyi Kurs (Free Course) in the strongly conservative region of Altaiskii Krai, south of Western Siberia. Beginning life with the award-winning, general-interest Svobodnyi Kurs, circulation 32,000, the company today has 460 full-time employees and seven newspapers with a total circulation of more than 240 000 copies.

Its existing two printing presses are the only high-quality, non-state newspaper printing facilities in the area. A modern new building hosts most of the company’s employees, as well as its training centre, where more than 200 local students are trained in journalism, business, advertising, management and public relations.

In 2003, Altapress won the Die Zeit Young Press Eastern Europe Award. In 2001, Mr Purgin was selected as Best Media Manager by the Russian Union of Journalists.

The INDI fund enables donors of all kinds -- development aid agencies, corporations, foundations, vendors and newspaper companies -- to make a significant contribution to independent press development.

The new fund provides:

  Capital, through repayable loans, to carefully identified press businesses;

  Tools to help implement business plans and ensure repayment of loans through provision of expert advice;

  Knowledge on how to leverage technologies to accelerate self-sustainability;

  Lobbying and campaigning support to help client newspapers resist threats to their press freedom.

WAN and MDLF ask funders to lend, not give, money. MDLF’s revolving pool model calls for funders to lend money at a low rate (optimally zero percent). This is a novel approach to media assistance which ties in well with the desire of many funding sources to support projects that carry a long-term, self-sustainability goal. Funders will also be able to add grants to their loans, if they wish, to give an additional boost to worthy press projects.

WAN, the global organisation for the newspaper industry, defends and promotes press freedom world-wide. It represents 18,000 newspapers; its membership includes 72 national newspaper associations, individual newspaper executives in 102 countries, 11 news agencies and nine regional and world-wide press groups.

MDLF, founded in 1995, pioneered a new model of media support, focused on developing self-sustainable independent media outlets. Acting as a mission-driven venture fund, MDLF enters into a close, involved and long-term relationship with each client. It supports each loan and investment with intensive financial monitoring, on-going advice, specialised consulting, management training and technology assistance.

Inquiries to: Larry Kilman, Director of Communications, WAN, 7 rue Geoffroy St Hilaire, 75005 Paris France. Tel: +33 1 47 42 85 00. Fax: +33 1 47 42 49 48. Mobile in Korea: +82 11 9679 9721. E-mail: lkilman@wan.asso.fr.