A loan facility agreement was signed in Moscow on 3 April 2003 for US$100 million between Vneshtorgbank and Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) (Madrid, Spain), second major Spanish banking institution in terms of total assets.
Such agreement is aimed at further developing bilateral relations, increased goods turnover between Russia and Spain and expanded long-term funding for Russian import of industrial goods and services from Spain. Under the agreement, BBVA will provide US dollar- and euro-denominated lending accounted for 85 percent of imported goods contract value for a 5-year term and more extended terms. Funding will be made under favourable financial treatment for the Russian party using insurance coverage from Spanish Export Credit Insurance Company (CESCE) without any Russian Government guarantees.
The first project to be implemented under such agreement will be a 5-year loan to Mikoyan Meat-Preserving Factoryounted to US$1.1 million. Such loan will be used to finance deliveries to Russian meat industry from METALQUIMIA, S.A., Spanish meat technology producer.
Once implemented, such project will be one more step towards realisation of the Bank`s policy involving financial support to Russian companies making equipment modernisation with a view to produce competitive output.
Earlier, Vneshtorgbank funded some Moscow-based and regional clients, which command leading positions in telecommunications, heavy engineering, mining industry, food industry and farm sector using credit lines from banks of Germany, Italy, United Kingdom, Chech Republic, Sweden, Japan and other countries supported by respective national export credit insurance agencies.
Vladimir Dmitriev (on the right), Vice-President and Deputy Chairman of the Executive Board on behalf of Vneshtorgbank, and by Luis Pareja, head of the representative office in Moscow on behalf of the BBVA, signed the Agreement.