EXIAR and Vnesheconombank sign buyer credit insurance contract
The Bank for Development and Foreign Economic Affairs (Vnesheconombank) has signed a buyer credit insurance contract with the Export Insurance Agency of Russia (EXIAR).
The document was signed by Vnesheconombank First Deputy Chairman – member of the Board Peter Fradkov and EXIAR CEO Alexey Tyupanov at the St Petersburg International Economic Forum on 18 June.
Under the contract, EXIAR is covering the risk of the Development Bank of Mongolia’s failure to perform its obligations pertaining to credit provided by Vnesheconombank. In turn, the Development Bank of Mongolia is financing Dulaanii Tsakhilgaan Stants-4’s (Mongolia) procurement of a steam turbine and auxiliary equipment, following the conclusion of an export contract with Ural Turbine Works.
Buyer credit insurance is a product offered by EXIAR which protects a Russian or foreign bank against the risks of loan default. Coverage extends to credit provided to a foreign borrower allowing them to perform their obligations under an export contract signed with a Russian exporter.
The Bank for Development and Foreign Economic Affairs (Vnesheconombank) was established on the basis of Federal Law of the Russian Federation 'On the Bank for Development' via the restructuring of Vnesheconombank of the USSR in 2007. The development bank is a key institution for implementing state investment policy. In accordance with the aforementioned law, VEB assists in providing financial support and guarantees for exports of Russian-manufactured products in order to diversify and increase the competitiveness of the country's economy, and boost investment. The Russian government has assigned the bank the role of coordinating comprehensive support for exports of Russian goods, work and services. Specifically, this involves improving the national support system for exports manufactured in Russia and increasing the level of access to support for all types of Russian organisations. The establishment of an integrated credit and insurance export support centre by merging EXIAR and Eximbank of Russia marks another vital step forward in developing the national export support system.
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011 as an open joint-stock company. EXIAR's mission is to support Russian high-tech exports by insuring export credits against commercial and political risks, as well as Russian investments abroad against political risks. Vnesheconombank is the sole shareholder of EXIAR. The agency's charter capital is RUB 31 billion. Since November 2014 Eximbank of Russia, a Russian specialized government–owned export–import bank, has been a subsidiary of Russian Agency for Export Credit and Investment Insurance (EXIAR).
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