During the 7-th Russian Economic Forum held in London, a framework credit agreement was signed on 19 April 2004 between Vneshtorgbank and ING BANK, the Netherlands, major Dutch bank. Under the Agreement, ING BANK will open a ?250m credit line on Vneshtorgbank to finance contracts for delivery of industrial goods to Russia from the Netherlands, Germany, Belgium and other European countries. Co-funding banks subject to the Agreement will be ING BHF-Bank, Germany, and ING Belgium, Belgium.
Vladimir Dmitriev, Executive Vice President and Deputy Chairman, for Vneshtorgbank, and Erwin Nederkoorn, Executive Vice President, Structured Export Finance, and Dick ten Bosch, General Manager, ING Bank (Eurasia), for ING BANK, signed the Agreement.
Under the credit line, financing will be granted for 85% of import contracts payable in euros or US dollars. Projects for import equipment under the Agreement will be implemented based on export support from Governments of European countries as exporters involving coverage provided by relevant export credit agencies which are ready to assume risks exposed by Vneshtorgbank, and no sovereign guarantees of the Russian Federation will be required.
The Agreement became a step forward in implementing Vneshtorgbank`s strategy towards raising funds on international markets for the Russian economy development. Under the Agreement, Vneshtorgbank`s customers will be granted added opportunities in implementation of proprietary long-term projects aimed at modernising their production and creating new industrial plants on fair international market terms.
For reference: ING BANK, the Netherlands, major European bank, ranks the second nation-wide and 19-th globally in terms of total assets. The Bank has in place a broad network of branches and subsidiaries in all regions world-wide. The Bank commands leadership positions on the European market offering a diversified array of services to public and privately-owned companies. Special emphasis is placed on long-term and project finance. Historical long-term relationship of the Bank with Russia where its subsidiary, ING Bank (Eurasia), operates, shows strategic importance, for ING BANK, relations with Russian counterparties.