A signing ceremony was held on 12 May 2003 in Moscow when an individual loan agreement for ?3.6 million was entered into between Vneshtorgbank and UBS AG, Zurich, ranking number one bank in Switzerland and fifth major banking institution world-wide.
This facility will be used by Vneshtorgbank for financing hard goods deliveries from Switzerland in favour of Kirskkabel Inc. located in Kirsk, the Kirov Region. ERG, export insurer, provided insurance coverage for the loan.
Arranging funding for Kirskkabel is a further Vneshtorgbank`s project along the lines of its strategy aimed at financial support for modernisation projects of Russian manufacturing companies. Earlier, Vneshtorgbank made loans to some Moscow-based and regional clients which command leading positions in telecommunications, heavy engineering, mining, food processing and agro industries using credit lines granted by banks from Germany, Italy, United Kingdom, Chech Republic, Japan and other countries and supported by relevant national export insurance agencies.
This project financing was the first step in implementation of the frame credit agreement signed on 11 March 2003 for CHF250 million between UBS AG and Vneshtorgbank. It is designed to foster bilateral interbank relations, to increase turnover between Russia and Switzerland and to expand long-term (5 years and more) financing of the Russian import of Swiss goods and services.