A US$10 million credit line granted to Vneshtorgbank
14 May 2003
A Loan Facility Agreement was signed between Vneshtorgbank and Eximbank of Romania on 27 March 2003 to make a USD 10 million credit line to Vneshtorgbank as part of the visit made by the Russian Prime Minister Mr Kasianov to Romania.
Andrey Kostin, Vneshtorgbank President and C.E.O., and Mariana Diaconescu, President of Eximbank of Romania, signed the Agreement.
Under the Agreement, Vneshtorgbank will provide funding under contracts involving deliveries of industrial equipment, consumer goods and services from Romania up for a three-year term. Eximbank of Romania will provide financing under the Agreement without any Russian Government guarantees.
Owing to the Agreement Vneshtorgbank now is able to raise US dollar denominated loans on favourable financial terms for the Russian party against implementation of industrial projects by domestic manufacturing businesses.
Eximbank of Romania is a special-purpose financial institution, which combines functions of a commercial bank and an export credit insurer engaged primarily in handling Romanian foreign trade, including national export insurance and export credit guarantees. The bank acts as a financial agent of the Romanian Government. The State owns controlling stake of the bank (about 90 percent) represented by the Authority for Privatization and Management of the State Ownership.
Entering into the Credit Agreement with Eximbank of Romania attested once again further confidence of Eastern European financial institutions in Vneshtorgbank.
Earlier, in February 2002, a Co-operation Agreement was entered into between Vneshtorgbank and Eximbank of Romania.
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