4 November 2003
Eximbank of China made to Vneshtorgbank on 21 August 2003 a US$5.4 million credit facility to finance telecommunication equipment deliveries from China for Uralsviazinform company for a 4 year term against a security granted by SINOSURE, Chinese export credit agency.
A credit facility was made by Eximbank of China to Vneshtorgbank under the master credit agreement envisaging opportunities to finance contracts of Russian importers for US$100 million within a 10 year term, which was entered into between the two banks last December.
This transaction became the first project under this credit facility draw-down and the first in the history of co-operation between Chinese and Russian banking institutions involving support from the State for export from China.
Vneshtorgbank signed similar master agreements with Industrial and Commercial Bank of Chinaounted to US$200 million for a term of up to 10 years, and with China Construction Bank also for US$200 million and up to a 10-year term.
Presently, Vneshtorgbank is the only bank in Russia which is able to finance Russian imports from China to such a great extent and for a long term, which enables to substantially expand import-financed operations for equipment from People`s Republic of China based on support for export from the Chinese Government and under favourable terms of the international market while no guarantees are requested from the Government of the Russian Federation.
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