Vneshtorgbank President and Chairman Yuri Ponamarev and Eximbank of Malaysia Chairman Abdul Rahman Arshad on Thursday signed a general agreement on cooperation in Moscow.
The document was signed as part of a Russian-Malaysian business and technical forum, which was attended by Malaysian Prime Minister Mahathir bin Mohamad. Eximbank of Malaysia will open a credit line for Vneshtorgbank to finance the import of Malaysian goods, services and equipment. Financing for commercial contracts serviced by Vneshtorgbank will be offered for one to five years depending on the nature of the deal.
The agreement opens up opportunities to carry out direct settlements between Russian and Malaysian trade partners without banks from third countries, Vneshtorgbank said in a press release. The deal will also enable Russian importers of Malaysian goods, especially palm oil, electronics and hi-tech parts, to receive loans with more attractive terms
Eximbank of Malyasia is a wholly owned subsidiary of Bank of Industri & Teknologi Malaysia, which is owned by the government of Malaysia and specializes in financing export and import deals.