5 November 2003
A ?300 million agreement on credit line to be granted to Vneshtorgbank was entered into 6 October 2003 between VTB and BNP PARIBAS, France, within the framework of the visit the French Prime Minister Mr. Jean-Pierre Raffarin to Moscow.
Andrey Kostin, President and C.E.O., for Vneshtorgbank, and Dominique Remi, Director of the Main Department on Finance in Power Industry, for BNP PARIBAS signed the Agreement.
This Agreement envisages financing by Vneshtorgbank deliveries of industrial plant equipment, goods and services from France and other EU countries to Russia. Under the Agreement, insurance coverage will be granted by COFACE, French export credit agency, or by relevant European export credit agencies and no additional guarantees will be required from the Russian Government.
The signing of the Agreement considerably expands VTB`s opportunities in attracting euro- and US dollar-denominated long-term credits intended for implementation of industrial development programmes designed by the Russian manufacturing sector on most favourable financial terms for the Russian counterparty.
Nowadays, BNP PARIBAS is the major French bank and the fourth world-wide in terms of total assets, which has established representative offices in over 70 countries. Vneshtorgbank and BNP PARIBAS have been traditionally maintained close partnership relations based on many decades-long co-operation.
The credit line facility from BNP PARIBAS is another stage in the strategy pursued by Vneshtorgbank to raise financial investments to the Russian economy, a further step forward in developing co-operation with international financial institutions in export finance. The signing of the Agreement once again demonstrated growing confidence Russia at large and Vneshtorgbank, in particular, are winning from industrialised financial world. Presently, Vneshtorgbank`s guarantees are accepted by export credit agencies and financial institutions from majority of leading countries in Europe, Northerica, Japan, and South-East Asia.