29 August 2003
Vneshtorgbank and European Bank for Reconstruction and Development (EBRD) agreed to give further effect to the agreement on granting Vneshtorgbank a revolving line of credit to finance agribusiness enterprises (both producers and processors). The credit lineount was increased from US$10 to US$15 million.
The line is used to make short-term loans under 1 year in Russian roubles and in hard currencies to Russian farm businesses fromong Vneshtorgbank`s customers.
Not only Moscow region-based farmers show interest in the EBRD line, but also companies located in areas with developed agribusiness sector. At present, Vneshtorgbank has been successfully co-operating with agribusiness companies, including major farm traders and processors in southern Russia, which was instrumental in selecting Vneshtorgbank by EBRD to implement the project.
The US$10 million credit line granted to Vneshtorgbank in 2002, was fully drawn down. With the EBRD line, loans were made to customers served by VTB branches in Rostov-on-the-Don, Belgorod, Vladimir, Samara, Saratov and others.
Vneshtorgbank hasassed a long-term experience in co-operating with EBRD on several programmes. In 1999, VTB became the first Russian banking institution to have been included in the EBRD-managed Trade Facilitation Programme involving EBRD guarantees granted against VTB`s commitments for up to 3 years and pre-export financing to be made to Vneshtorgbank`s customers for up to 2 years.
As from 2001, guarantees and loans made by Vneshtorgbank to Russian exporters from EBRD financing raised under a variety of Programmes totalled about US$180 million.
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