Aiming to enhance cooperation with federal and municipal executive bodies, VTB Bank Branch in Smolensk made a RUB 50 million loan to the City Administration for a 9-month period.
Documentation of another RUB 50 million loan to Smolensk Administration is being finalized.
The Administration plans to channel the funds raised into financing top priority expenses of the city to ensure a social stability of Smolensk.
VTB cooperation with federal and municipal entities has become a good tradition, thus helping the regions to solve their economic, social and financial tasks.
VTB Bank is the largest and regular lender to the Smolensk region. Cooperation between the Bank and the Administrations of Smolensk region and Smolensk city goes back to 2004. Presently, the aggregate volume of VTB loans to the regional budget has reached RUB 530 million.
The lending limit set by VTB Bank to municipal administrations of Smolensk region and the city exceeds RUB 1.9 billion.
In 2008, the real economy of Smolensk region got RUB 2.2 billion. The resources were used to finance the jewelry industry, machine building, trade, light and timber industries.