Vneshtorgbank's total amount of operations has increased six times in the past three years and has reached €500 million

Sunday, November 29, 2020

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Vneshtorgbank's total amount of operations, covered by export insurance agencies, has increased six times in the past three years and has reached €500 million, Natalia Loginova, department head on contacts with financial institutions, said Wednesday at a conference at the Adam Smith Institute. Loginova explained that special documents had been worked out for conducting such operations and bilateral agreements have been reached with a great number of export insurance agencies "from practically all over the world." According to Loginova, European countries account for the greatest amount of these operations. Most of the bank's operations for financing trade are done in euros (more than 60%), trade in dollars comes in second, mostly being done with the United States and China. Other products also used for financing foreign trade include letters of credit with postponement of payment, Loginova said, noting this scheme is especially interesting in financing exports. The European Bank for Reconstruction and Development's program for assisting with trade assists with Vneshtorgbank's activity in financing foreign trade operations. Under the program Vneshtorgbank has a limit of $130 million, making credits and guarantees possible. The maximum amount of these operations is $25 million. According to Loginova ten big Russian banks lead in foreign trade operations. These are mainly captive banks, connected with big companies, and state banks. Their share in financing exports is about 10%. Loginova also noted that foreign banks are now financing 21% of imports to Russia

Bookmark Vneshtorgbank's total amount of operations has increased six times in the past three years and has reached €500 million