Russian Agricultural Bank and EXIAR launch joint programme to support exporters
The Russian Agency for Export Credit and Investment Insurance (EXIAR) and the Russian Agricultural Bank have signed a cooperation agreement with the aim of helping to implement state measures to support export-oriented companies.
Under the document, the two organisations will collaborate on implementing a credit programme for export-oriented SMEs, as well as for other companies with an annual turnover of under RUB 2 billion. The Agency will insure the bank against the risk of loan default by a borrowing exporter.
The agreement also outlines the ability of the Russian Agricultural Bank to take advantage of the simplified risk assessment procedure within the limit set for financing a single borrower. With EXIAR's insurance coverage, collateral requirements from the bank will also be reduced for export-oriented companies.
Loans for up to two years will be issued for the purpose of replenishing up to 80% of the borrower's working capital for implementing an export contract. Under the terms of the agreement, items for export may include goods, work or services in non-commodity industries. Russian companies or organisations’ content must constitute at least 20% of the total value of the contract.
The programme is designed to give further incentive to Russian companies to export, as well as to facilitate rapid growth among SMEs.
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 30 billion.
The Russian Agricultural Bank is the main credit and financial institution for Russia's agricultural industry. The bank was established in 2000. Today its assets and capital make it one of the biggest and most stable banks in the country. It is a key creditor for the industry, and ranks among the leading large Russian banks for reliability. The bank is fully owned by the state. The Russian Agricultural Bank possesses the second largest branch network in Russia, with more than 1,500 outlets across the country.
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