Attracting, Servicing and Repaying Credits against Guarantees of the Russian Federation Government
Vnersheconombank is one of the most important vehicles for attracting foreign investments against guarantees of the Russian Government. The amount of investments in 1992—2006 was in excess of 16 billion US dollars. In accordance with the policy pursued by the Russian Government, the funds attracted by Vnesheconombank against the government guarantees are used exclusively to finance socially meaningful projects. These are the credits to finance projects carried out on Russia’s territory under the presidential program “Children of Russia”, purchase equipment for equipping medical institutions (the Research Children’s Health Center under the Russian Academy of Medical Sciences, the Research Institute of Pediatric Oncology and Hematology, the Blokhin Oncology Research Center under the Russian Academy of Medical Sciences, the Federal Center of Kidney Transplantation and Dialysis, the Burdenko Research Institute of Neurosurgery and others), as well as to reconstruct, build and equip educational institutions (the Russian Academy of Sciences, Russian State Medical University, the Lomonosov Moscow State University, the Plekhanov Russian Academy of Economics and others). The fact that international rating agencies assigned Vnesheconombank a credit rating in line with sovereign one allows it to attract credit resources to finance programs backed by the Russian Government on the most favourable terms.
In this line of business Vnesheconombank is responsible for:
- preparing and making agreements with foreign creditors on attracting credits to fund centralized imports;
- registering credits attracted against the Russian Government guarantee and conducting payment and other banking transactions associated with the use and repayment of these credits;
- conducting economic examination of projects expected to be financed at the expense of credits attracted against government guarantees;
- exercising control over the use of foreign credits attracted against guarantees of the Russian Government;
- registering amounts of debts, to the federal budget, owned by Russian importers of products purchased at the expense of attracted foreign credits under Debt Liabilities and Loan Agreements made with the Russian Ministry of Finance and Vnesheconombank, and exercising control over their repayment.