A signing ceremony was held in Moscow on 27 June 2003 where a Co-operation Agreement was entered into between Vneshtorgbank and the Spanish national export insurance agency (Compania Espanola de Seguros de Credito a la Exportacion, S.A. (CESCE)).
Vladimir Dmitriev, Executive Vice President-Deputy Chairman, for Vneshtorgbank, and Luis Antonio Ibanez, Director, for CESCE, signed the Agreement.
The Agreement envisages coverage for short-, medium-, and long-term export credits to finance deliveries of Spanish goods and services to Russia, and investment projects of Spanish companies in Russia.
Under the Agreement, CESCE will provide insurance for operations where Vneshtorgbank will act as a borrower and a repayment guarantor.
Earlier, Vneshtorgbank raises financing from BBVA against CESCE coverage provided for the contract between the Mikoyan meet processing plant and Metalquimia, Spanish company.
The Agreement became a step forward to further strengthening of the VTB image as a sound financial institution, and its obligations are regarded abroad as a trustworthy guarantee for successful project implementation and timely repayment of credits raised for Russian economy development.
For reference: CESCE, national export insurance agency, was established in 1970 on the initiative of the Spanish Government and private companies to provide coverage for political and business risks in foreign trade. The Government owns an over 50% stake.