12 January 2004
A signing ceremony took place, where a framework credit agreement was entered into between Vneshtorgbank and a major European banking institution, Fortis Bank, Belgium.
Mr. Vladimir Dmitriev, Executive Vice President and Deputy Chairman of the Management Board, for Vneshtorgbank, and Xavier d`Harveng, Executive Director and head of the Export and Project Finance Department, for Fortis Bank, signed the Agreement.
Under the Agreement, Fortis Bank will open a ?250 m credit line on Vneshtorgbank to finance contracts comprising deliveries of industrial goods and services to Russia from European countries.
Funding under the credit line will cover 85% of the euro- or dollar denominated import contracts. Projects to import equipment under this Agreement will be implemented based on Government support for export from European countries with coverage from corresponding export credit agencies, and no guarantees will be required from the Russian Government.
Under this Agreement, Vneshtorgbank`s customers will be given added opportunities to implement proprietary long-term investment projects on favourable international market terms.
This Agreement has become another step forward in implementing Vneshtorgbank`s strategy with a view to develop foreign trade relations of the Russian Federation and raise funding on international markets for the Russian economy needs.
For reference: Fortis Bank, Belgium, is a major European bank with ?250 billion market capitalisation. Established in 1822, the bank is the number one in Belgium, it ranks 20th in Europe and 31st world-wide in terms of total assets. The bank has a broad network of branches and subsidiary banks located in all regions of the globe. Standard & Poors assigned the bank AA- и A-1+ credit ratings (as of July 2003). The bank commands leadership positions on the European market, offering broad range of banking services to public and private companies. Focus is made on services involving long-term funding and project finance.
Back to the list