20 June 2003
A Co-operation Agreement was signed on 29 May 2003 by Andrey Kostin, President and Chief Executive Office, for Vneshtorgbank, and Alexander Semeniaka, Director General, for Housing Mortgage Agency.
The Co-operation Agreement entered into between Vneshtorgbank and Housing Mortgage Agency has become the first step towards creating prerequisites for large-scale lending to households with a view to purchase residential property through long-term financing. This social and economic goal in Russia was especially stressed as very important in the working meeting of the Russian President Vladimir Putin held in early May 2003 with Andrey Kostin, Vneshtorgbank`s President and C.E.O., where Mr. Kostin said the Bank is going to redouble its efforts in mortgage lending based on close co-operation with Housing Mortgage Agency.
Under the Agreement, Vneshtorgbank will contribute to meet targets on further residential mortgage development in the Russian Federation, assigned to Housing Mortgage Agency by the Russian Government.
Based on the Agreement, Vneshtorgbank and Housing Mortgage Agency will make combined efforts to produce and test optimum lending schemes, and to implement solid and less risky universal mortgage standards and techniques. Further step in co-operation between Vneshtorgbank and Housing Mortgage Agency will be making of agreements to regulate in detail co-operation arrangements between Vneshtorgbank and the Agency in Russian provinces with a view to introduce residential mortgage based on Standards Regulating Mortgage Credit Making, Refinancing and Follow-up Procedures developed by the Agency.
Under the Agreement, Vneshtorgbank and its broad branch and office network will help forward regional policy of Housing Mortgage Agency oriented towards large-scale crediting to cover all Russian regions, thus ensuring rational fund reallocation and mitigating risks through investment structure territorial diversification.
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