24 July 2003
A framework credit agreement was signed in London on 25 June 2003 between Vneshtorgbank and HSBC Bank plc, one of the largest banking and financial services organisations in the world, in the course of the visit of the Russian president Vladimir Putin to the United Kingdom.
Andrey Kostin, President and C.E.O., for Vneshtorgbank, and Mr Shaun Wallis General Manager, International, for HSBC Bank plc, signed the Agreement.
Under the terms of the Agreement, HSBC Bank plc will open to Vneshtorgbank a ?200m credit line to finance contracts for deliveries of manufactured goods and services to Russia from UK and other countries.
The credit line envisages financing for 85% of the import contractount in euros, US dollars or pounds sterling. Equipment import projects under this agreement will be implemented on the basis of the government export support from exporting countries with involvement of ECGD and other export credit agencies, and no guarantees from the Russian Government will be required.
Under the Agreement, Vneshtorgbank`s clients will be granted added opportunities to implement their own long-term investment projects on fair market terms. Thanks to co-operation with HSBC Bank plc., its branches and subsidiaries in Europe, USA and other areas world-wide, Vneshtorgbank will finance business of its customers related to equipment and manufactured good import both from Russia`s traditional trade partners and countries such as Belgium, Denmark, Ireland, Chech with rather low trade turnover, thus contributing to boost Russia`s foreign trade relations.
This agreement is a further step forward in bilateral co-operation between HSBC Bank Plc and Vneshtorgbank. Earlier, in August 2002, Vneshtorgbank already was granted credits from the Prague-based branch of HSBC Bank Plc totalled over $9.5 million and from the Moscow-based subsidiary of HSBC Bank Plc, HSBC Bank (RR), to finance purchases and installation of telecommunication equipment to be imported from Chech Republic.
For reference: HSBC Bank plc is one of the oldest and largest banks of the world. It was established in 1836 and nowadays it ranks 5th in the United Kingdom and 34th world-wide in terms of total assets (over ?200 billion). The bank established a broad network of agencies and branches located in all regions of the globe. Standard & Poors assigned to the bank AA- and A-1+ credit ratings (as of January 2003).