Vnesheconombank Supervisory Board Regular Meeting Held

Russian Prime Minister v. V. Putin chaired a meeting of Vnesheconombank (VEB) Supervisory Board.

v. V. Putin’s Opening Address:

Good afternoon, Dear Colleagues,

We need to discuss a wide range of issues today. And one of them is Vnesheconombank’s participation in implementing the Government’s measures to cope with the crisis, including the Bank’s participation in the programs designed to support small and medium-sized business. Moreover, we’ll discuss VEB’s proposals for its participation in the construction of Olympic facilities.

I have already spoken today about additional measures for supporting the banking system at a meeting of the Government. It’s also a matter of providing additional funds to Vnesheconombank to enable it to expand the scope of its activity and fulfill its obligations and decisions.

In accordance with the Law and the Memorandum on Financial Policies, one of the Bank for Development’s top-priority objectives is to support small and medium-sized businesses and, above all, those operating in the real sector of the economy that introduce high technologies and create new jobs. Today, as we see it, it is the most topical task.

By now, the Bank has already extended credits worth 8.9 billion rubles and till the year-end is to finance projects for a total amount of at least 30 billion rubles. We must approve today all the documents required for implementing this program.

Another serious issue on the agenda deals with the preparations for the Sochi Olympics. VEB is tasked with becoming one of principal creditors of Olympic facilities construction. In the conditions of the world crisis, this step would make it possible for developers to raise long-term financial resources on acceptable terms and of course with due regard to reliable performance guarantees.

In this regard, I think it necessary to work out a financing scheme in such a way as to use VEB’s credit resources to pay for actually performed work, exercising, of course, permanent control over their real volumes and value.

VEB’s Management Board has developed basic approaches for the bank’s participation in financing Olympic facilities. We’ll also discuss them today.

Let’s proceed to discussing issues on our agenda.

Origin: Internet Portal of the Government of the Russian Federation

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On signing an agreement between Vnesheconombank and KfW Bankengruppe

Today, on February 4, 2009, in Moscow, state corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and Kreditanstalt fьr Wiederaufbau Bankengruppe (KfW Bankengruppe) signed an Agreement on the German-Russian Initiative for SMEs Financing.

On behalf of Vnesheconombank, the document was signed by Vladimir Dmitriev, Chairman. KfW Bankengruppe was represented by Wolfgang Krogh, Member of the Managing Board, and Doris Koehn, Senior Vice President.

The Agreement is aimed at rendering assistance to Russian small- and medium-sized enterprises (SMEs). To this end, it envisages providing medium-term finance for SMEs, as well stimulation of entrepreneurial activities in regions and support for banks that grant credits to SMEs.

In accordance with the Agreement, to finance SMEs, KfW Bankengruppe will extend to Russian commercial banks against the guarantee of Vnesheconombank targeted loans for the total amount of EUR 200 million. The loan tenor is up to 5 years.

Given the fact that when selecting SMEs eligible for financing priority is to be given to projects, which aim, among other things, to develop and introduce energy-saving technologies, the implementation of the Agreement would also contribute to improved environmental protection.

The Agreement signed might be viewed as a continuation of the Agreement on Cooperation signed in July 2007 between Vnesheconombank and KfW Bankengruppe.

Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

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