Government Financial Assets Management

Government financial assets registered with Vnesheconombank are liabilities of foreign borrowers (foreign states, banks, commercial companies) on credits extended to them by the Russian Federation and the former Soviet Union. Most of these liabilities are by their nature export credits associated with the deliveries of Russian (and Soviet) industrial goods and services abroad.

As an agent for the Russian Government in managing government foreign financial assets Vnesheconombank is responsible for:

  • registering foreign borrowers’ debts duly and preparing complete and accurate statements on the status and movement of Russian government financial assets;
  • making regular inventory of assets and reconciling payments with foreign debtors;
  • making an entire range of calculations associated with using, repaying and exchanging government credits extended by the Russian Federation and the former Soviet Union to foreign borrowers;
  • making, as instructed by its customers involved in carrying out projects at the expense of extended government credits, an entire range of international payments over these transactions, as well drafting and documenting them;
  • cooperating with Ministry of Finance of the Russian Federation in settling debtor countries’ liabilities to the Russian Federation both on bilateral and multilateral basis within the Paris Club of Creditor Nations , as well as participating in approving interstate credit documentation;
  • drafting interbank documentation, estimates and expert’s opinions on would-be debt liabilities settlement schemes;
  • making arrangements for and conducting banking transactions to sell to the Russian companies, on a tender basis the funds in clearing and non-convertible currencies being received from India, Vietnam and Syria in repayment of their debts to the Russian Federation. The auctions take place on regular basis. Please contact us for the details of the auction procedure and the dates of the forthcoming auctions.