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IMB is fourth Russian bank to join EBRD trade programme
The European Bank for Reconstruction and Development (EBRD) has extended a €15 million trade facility to International Moscow Bank (IMB), the fourth Russia-based bank to join the programme, whose aim is to bolster international commerce.
"This deal underlines the EBRD's commitment to reviving international trade and is additional proof of its support for the Russian banking sector," said Hugh Baylis, an EBRD senior banker in charge of the Bank's Trade Facilitation Programme.
"We are glad to be participating in the Trade Facilitation Programme, which will provide important additional guarantees to our clients," said Ilkka Salonen, chairman of IMB.
The EBRD has approved uncommitted trade facilitation lines in excess of €100 million in Russia since the programme's inception in 1999. Throughout the region, the total volume of trade made possible thanks to the programme has been over €270 million.
A total of 51 banks in 20 of the Bank's 27 countries of operations are issuing letters of credit that qualify for the EBRD guarantees under the programme. The EBRD provides guarantees of up to 100 per cent on the credit risk of transactions, thus freeing traders in its countries of operations from the need to deposit cash collateral and removing one of the main obstacles to the normal financing of trade.
EBRD guarantees are unconditional, irrevocable and payable on first demand. So far, no bank has ever called in an EBRD guarantee under this programme and there have been no defaults. The EBRD also provides short-term revolving loans to selected banks for on-lending to local companies as pre-export finance.
The other three Russia-based banks participating in the Programme are Vneshtorgbank, Sberbank (the Savings Bank of the Russian Federation) and WestLB's Russian subsidiary, ZAO Westdeutsche Landesbank Vostok.
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