MOSCOW, Dec 19 (Reuters) - Russian state diamond miner Alrosa has secured a 44.2 billion rouble ($1.59 billion) loan from state-controlled bank VTB (VTBR.MM) which will allow it to redeem its short-term debt this year, VTB said on Friday.

The financing has been provided for 600 days, VTB said in a statement.

"The deal will allow Alrosa to settle accounts with creditors and restructure its credit portfolio in favour of long-term debts on time and in full before the end of 2008," VTB said.

Alrosa -- the world's second-largest diamond producer after De Beers -- had planned to refinance debts with a Eurobond issue scheduled for placement in November this year but had to drop the plans because of the financial market turmoil, VTB said.

Last week, the company also slashed its annual net profit forecast by more than 80 percent due to the crisis.

Russia has launched a wide-ranging rescue plan worth more than $200 billion for the economy and financial markets hit by the world financial crisis. VTB is one of the entrusted banks participating in the programme.