Vnesheconombank and Export-Import Bank of Korea Sign Agreement

30 september 2008 года
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Today, on September 30, in the course of Korean President Lee Myung Bak’s formal visit to Russia, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Export-Import Bank of Korea entered into a Framework Credit Agreement worth 200 million US dollars..

The Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev and Export-Import Bank of Korea Chairman Dong Su Chin.

The Framework Credit Agreement calls for providing credit resources to Vnesheconombank to finance projects on the territory of the Russian Federation for a period of no less than 48 months, with a potential grace period of up to 4 years.

Credit resources to be raised would be provided to Russian companies involved in purchasing goods and services from Korea as agreed upon with the Export-Import Bank of Korea.

 

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

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Russian Prime Minister V.V. Putin’s Opening Address at a Meeting on Developing a Concept of Long-Term Socio-Economic Development of the Russian Federation until 2020 and on Main Lines of Activity of the Government of the RF until 2012

29 september 2008 года
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V.V.Putin’s Opening Address:

-Good afternoon, Dear Colleagues,

Our meeting is devoted to developing a Concept of Long-Term Socio-Economic Development of Russia until 2020. We are also to consider a Draft of Main Lines of Activity of the Government until 2012, that is, for a period of four years. These documents have been extensively discussed in federal authorities, regions and the expert community. Now work on these documents is nearing the “home stretch”.

I would like to remind you that in July 2006, at a meeting of the State Council instructions were given to prepare a policy document setting out prospects and priorities of the country’s development in the next decade.

On Wednesday, October 1, the Concept and Main Lines of Activity are to be considered at a meeting of the Government. Today we must agree upon the final details of these documents. I would like you to pay special attention to the following principal tasks.

The first task is to create favorable macroeconomic conditions for implementing our plans and to strengthen the country’s credit and financial system.

The second task is to identify development scenarios of the pension system.

The third task is to implement our plans to upgrade infrastructure and form new growth points in the regions.

I have mentioned the need to strengthen the country’s credit and financial system. By the way, we are all well aware the world’s economy and financial system are coming up against serious problems. They started in the US, and so far the American authorities have been unable to resolve economic problems and the evident financial crisis in the United States. Unfortunately, we can acknowledge that this “infection” appears to have also spread to the European financial system.

Under these conditions Russian banks and companies which obtained and, in part, keep on obtaining credits in the West would find it extremely difficult to prolong their old credits and obtain new ones in Western financial institutions. That is why in order to support Russia’s financial system, secure the implementation of the projects launched earlier, limit the negative impact of the world’s financial crisis on the domestic economy and protect Russian companies’ assets placed with foreign credit institutions, the Government of the Russian Federation together with the Central Bank have proposed a number of additional measures.

First. Any Russian bank or company may apply for a credit at Vnesheconombank to repay their debts to foreign creditors on credits obtained till October 25 of this year. Of course, lending terms must be market-based. To this end, the Central Bank is to place deposits with Vnesheconombank for the amount of credits extended by VEB and a total limit of this amount is not in any case so far to be in excess of 50 billion dollars.

Second. Our proposal is to authorize the Central Bank to extend credits to commercial banks without collaterals. This will make it possible on a tight timetable to support the banking market with required liquidity. This is what the Russian Finance Ministry is already doing and this process involves 28 banks. In the case that the proposed plan is implemented, the number of banking institutions which will be able to take advantages of these services will increase.

Of course, credit risks should be minimized and the Central Bank will exercise control over financial status of those financial institutions to which these credits will be granted.

Third. In order to support the interbank credits market, the Bank of Russia will be granted the right to enter into agreements with certain banking institutions to partially compensate for losses from lending to other Russian financial institutions if losses emerge.

And fourth. As we have already agreed earlier, this and next year’s budget will allow for 250 billion rubles to support the stock market. The first 75 billion rubles  will be allowed for in this year’s budget to increase Vnesheconombank’s capital. VEB has already started to insure leading banks’ actions aimed at supporting transactions on the stock market. VEB’s Supervisory Board made a decision to do this on September 18 and I, as the Chairman of the Supervisory Board, signed this decision.

Now we need to support VEB for it to continue this course of action. The said measures make it necessary to introduce changes into applicable legislation. I ask the Russian Finance Ministry to look into these issues thoroughly together with deputies of the State Duma and submit relevant documents to Parliament. A task force has been established under the Russian Finance Ministry to rapidly work out decisions to develop domestic financial market in the mid and long term. It incorporates not only officials and experts but also representatives of private business.

I hope that this work would proceed uninterruptedly and the said task force would promptly consider problems and offer relevant decisions in proper time.

Thank you.

 

 

Origin: Internet-portal of the Government of the Russian Federation
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