Shanghai, August 22, 2002 - A Loan Agreement was signed between Vneshtorgbank and the Industrial and Commercial Bank of China, a major banking institution of the People`s Republic of China. The agreement was signed within the framework of the meeting between the heads of the Russian and Chinese governments.
On behalf of Vneshtorgbank, the agreement was signed by Andrey Kostin, President and Chairman of the Board of Directors and Jiang Jianquing, Chairman and President of the Industrial and Commercial Bank of China represented the other side.
Under the agreement, a credit line for the sum of USD 200 million is to be extended to Vneshtorgbank to finance the purchases by Russian importers of Chinese long-use goods and products. The loan is insured by SINOSURE, an export credits guarantee agency of the People`s Republic of China. The agreement signed is deemed to further facilitate medium- and long-term (up to ten years) lending by Vneshtorgbank to its customers who are actively engaged in imports of sophisticated equipment from China on favourable terms.
Presently, guarantees issued by Vneshtorgbank are readily accepted by export credits guarantee agencies and export-import banks of all Russia`s major trade partners in India, China, South Korea, Vietnam, Malaysia and others. The new agreement is clear evidence of Vneshtorgbank`s stronger geographical footing in the Asian area.
Moreover, the agreement will certainly give a new boost to Vneshtorgbank`s financing of equipment imports from the People`s Republic of China within the framework of the Chinese state programme aimed at supporting exports with no guarantees issued by the Government of the Russian Federation.