Vnesheconombank Supervisory Board approves the Procedure for implementing measures provided for by clauses 1 and 2 of the Federal Law “On Additional Measures for Supporting the Financial System of the Russian Federation”
Vnesheconombank (VEB) Supervisory Board approved criteria and the procedure for selecting companies to refinance their debts to foreign creditors. VEB Chairman Vladimir Dmitriev spoke about it after an extraordinary meeting of Vnesheconombank Supervisory Board. It is only companies operating on the Russian territory and in the real sector of the economy, he explained, that would be able to obtain funds for refinancing from Vnesheconombank. Their activity should be viewed as critically important for the Russian regions’ economy or strategic industries.
Companies that raised credits to implement investment projects or purchase assets on the Russian territory are entitled to request funds for refinancing foreign loans. Besides, in case of joint stock companies, they should raise co-financing all on their own, thereby sharing risks with the state, said V. Dmitriev.
A maximum amount of funds to be provided by Vnesheconombank (VEB) to Russian companies for refinancing foreign loans shall not exceed USD 2.5 billion per a single borrower. Vladimir Dmitriev also said that a minimum amount is fixed at a level of USD 100 million adding that such conditions are set forth in the Memorandum on the Bank’s Financial Policies, which stipulates that, a loan to be granted is not to exceed 25% of VEB’s charter capital.
VEB is to consider applications for refinancing foreign loans within a period of 18 days from the date of submission. V. Dmitriev explained that it would take 3 days to conduct a preliminary examination of an application, 10 days to conduct a comprehensive examination during which the Bank is to assess a borrower’s financial standing and review documents relating to an applicants’ foreign loan. A final decision on the outcomes of examination is to be made within 5 days, said V. Dmitriev. A great number of applications made it necessary to optimize the Bank’s organizational and personnel structure to process applications more efficiently.
Procedure for Implementing by State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ Measures Provided for by Articles 1 and 2 of Federal Law No. 173-FZ ‘On Additional Measures for Supporting the Financial System of the Russian Federation’ dated 13 October 2008
A meeting of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ Supervisory Board chaired by Russian Prime Minister Vladimir Putin was held at the Russian Federation Government House today, on September 15.
The meeting approved the Bank’s participation in financing the following major investment projects:
The Sevmash Production Association’s production program;
OJSC Corporation VSMPO-AVISMA investment development program. The Corporation’s investment program is aimed at reconstructing and modernizing the facility and provides for increased production of deeply processed products. The implementation of this investment program will result in increased production of titanium sponge, it will increase by 20% (up to 44 thousand tons per year), and rolled titanium – by 46% (up to 46 thousand tons per year). The program’s total value is 26 billion rubles, the Bank’s participation share in the project will amount to 400 million US dollars. Funds are to be made available for a period of 5 years;
Construction and operation of the alpine ski resort “Rosa Khutor” in Krasnaya Polyana. The Rosa Khutor project provides for creating a unique year-round sports and tourist complex. Under the project a number of Olympic sports facilities are planned to be built, they include an alpine ski center, a snowboard park, alpine ski routes to hold competitions in all 10 alpine ski events as well as hotel infrastructural assets. The project’s total value is 1,375 million US dollars. Vnesheconombank plans to earmark funds worth up to 750 million US dollars for a period of 15 years for this project’s implementation;
Construction of a new integrated complex to manufacture ammonia, methanol and granulated carbamide in the city of Mendeleevsk, the Republic of Tatarstan implemented by OJSC “Ammonii”. The project provides for building an integrated facility to manufacture ammonia and methanol with a capacity of 2,050 tons of ammonia per day and 668 tons of methanol per day at the mineral fertilizers manufacturing factory Mendeleevskazot LLC. The total value of the project is more than1billion US dollars US dollars. Vnesheconombank’s participation share will amount up to 870 million US dollars;
Construction of a factory in the Ulyanovsk region to manufacture and assemble super- light jets Eclipse 500 as well as provide after-sales services. The factory’s projected capacity will amount to 800 jets per year. Vnesheconombank is expected to finance the project in full the total value of which is 205 million US dollars, moreover Vnesheconombank and the Ulyanovsk region Administration will be among the shareholders of the enterprise.
The Supervisory Board has also made a decision to establish a targeted financing limit for the Kazakhstan Development Bank to open a credit line worth up to 300 million US dollars with a repayment period of 15 years. The credit line is of targeted nature – funds will be made available to support the export of Russian companies’ industrial products and services to the Republic of Kazakhstan. Decisions on conducting each specific transaction are to be made by Vnesheconombank’s governing bodies including decisions on all substantial terms of these transactions.
A number of other issues have been also considered.
Origin: Press Office of Vnesheconombank
Contact person: Svetlana Nikitina
Phone: +7 (495) 608-46-93, Fax: +7 (495) 975-21-34