On December 3, 2004, a number of credit agreements were signed by Vneshtorgbank and Union Bank of Switzerland, Zurich (UBS) to finance purchasing of equipment by Vneshtorgbank`s customers within the framework of projects aimed at industrial upgrade. Insurance for the funds extended by Vneshtorgbank shall be provided by ERG, the official export credit agency of Switzerland.
These Agreements were signed within the framework of the General Credit Agreement for CHF250 mln signed by the two banks in March 2003. The total worth of the agreements signed exceeds ? 119 mln which is three times the volume of current operations involving Russian companies already insured by ERG. The funds are raised by Vneshtorgbank for eight years and a half. This is the largest loan ever raised by Vneshtorgbank with the insurance provided by foreign export credit guarantee agencies.
The Agreements signed shall help Vneshtorgbank implement its strategy of large-scale financing of equipment purchases by Russian companies who are interested in raising long-term funds to be channeled into industrial upgrade and renovation.
Earlier, Vneshtorgbank extended funds to a number of Moscow and regional customers who are recognized leaders in such industries as telecommunications, heavy engineering, mineral resources, construction, food and agriculture, with the help of credit lines opened by export credit agencies and international banks of Germany, Italy, France, Switzerland, Great Britain, the USA, Japan and other countries.