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Russian Government signs post-privatisation EBRD loan
To promote foreign investment in Russia, assist Russian enterprises in their restructuring process and develop corporate governance standards in state-owned companies, the European Bank for Reconstruction and Development (EBRD) is providing a Post-Privatisation Support Loan of US$ 28.5 million (ECU 22.7 million) to the Russian Federation.
"All these issues are critical to the reform process, and it is important for the EBRD to be able to work with the Russian Government on these critical issues," said Jacques de Larosière.
An initial loan was approved by the Bank in 1993 to assist the Russian Government with the mass privatisation programme. As this effort was widely supported with bilateral grants, however, the EBRD loan was not fully utilised.
The new loan, which carries a 6-year maturity and 2-year grace period, will indirectly contribute to the development of the capital market as well. The foreign investment promotion projects have been identified and recommended for EBRD's financing by the Foreign Investment Advisory Council to Prime Minister Chernomyrdin.
The Russian Privatisation Center (RPC) which acts as the project implementation unit, will, through the extensive network of regional branches, help to ensure that the wider benefits of the loan, such as skill and technology transfer, are accessed by a wider audience.
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