4 November 2003
A signing ceremony took place on 1 September 2003 in Moscow, where two credit facility agreements were entered into for CHF23.2 million and ?6.6 million between Vneshtorgbank and AVTOVAZ company, Togliatti, Samara Region, major car maker in Russia.
Under these agreements, Vneshtorgbank will open to AVTOVAZ credit lines to pay industrial equipment deliveries from Switzerland and Austria within the framework of the AVTOVAZ manufacturing program implementation. The equipment will be purchased via raising loans made by UBS AG, Zurich, and Raiffeizen Zentralbank Osterreich AG, Vienna, against insurance coverage granted by Swiss and Austrian export credit agencies, ERG and ОеКВ, accordingly.
Vneshtorgbank signed this August in Moscow individual interbank credit agreements with UBS and Raiffeizen Zentralbank Osterreich, which envisage financing import contracts entered into by AVTOVAZ for over a 6 year term.
This project is a further Vneshtorgbank`s step forward under the policy it pursues to financially support Russian companies engaged in production overhaul and modernisation, as well as implementation of new technologies with a view to produce competitive output.
Vneshtorgbank already took part in implementation of similar projects in telecommunications, heavy engineering, mining, food and agribusiness using credit lines opened by banks operating in exporting countries against guarantees of the relevant national export credit agencies.
Vladimir Dmitriyev, Executive Vice President and Deputy Chairman, for Vneshtorgbank, and Vitaly Vilchik, Director General, for AVTOVAZ, signed the agreement.
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