Vneshtorgbank and the Japan Bank for International Cooperation (JBIC) have signed an agreement enhancing Vneshtorgbank`s resources to finance import of Japanese goods.
Under the agreement, Vneshtorgbank will be able to receive funds both in USA Dollars and Japanese Yens within the credit line opened by JBIC for the next 10 years. Vneshtorgbank is the only Russian bank credited by JBIC for such a long period.
To extend a credit, JBIC and another Japanese bank, the Bank of Tokyo-Mitsubishi Ltd., set up a consortium, with NEXI, an export insurance agency of Japan, providing insurance. The credits are aimed at financing import from Japan, while Vneshtorgbank is expected to select and credit Russian borrowers.
Vneshtorgbank and JBIC started to cooperate back in 2002. At that time Vneshtorgbank was the first Russian bank to be granted a credit line totaling 8 billion Japanese Yens. Within the line, Vneshtorgbank has financed a number of its customers` transactions to purchase woodworking equipment, equipment for optical communications and special purpose vehicles. These transactions haveounted to 1.5 billion Japanese Yens.
The new terms of financing in United States Dollars will stimulate a more extensive use of the credit line and a wider range of mid-term and long-term (up to 10 years) credit facilities for Vneshtorgbank customers to import equipment from Japan on favorable terms.
The Agreement signed is further evidence of Vneshtorgbank being recognized in Asian region. The Bank`s liabilities are accepted by export insurance agencies and export-import banks of all major trading partners of Russia in this region, such as, India, China, South Korea, Vietnam, Malaysia and others.
Japan Bank for International Cooperation is a legal successor of Eximbank of Japan and is owned by the Government of Japan. JBIC specializes in export and import financing. Bank of Tokyo-Mitsubishi Ltd is a part of Mitsubishi Tokyo Financial Group and is ranked number twoong Japanese banks in terms of assets. Since 1992, both Japanese banks have their representative offices established in Moscow.