JBIC Provides Bank-to-Bank Loan to Savings Bank of the Russian Federation Credit Line for the Largest Commercial Bank in Russia to Support Japanese Exports
November 24, 2004
November 24, 2004
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today an agreement for a bank-to-bank loan totaling the equivalent of US$70 million with the Savings Bank of the Russian Federation (SBERBANK), the largest commercial bank in Russia. The loan was cofinanced by Sumitomo Mitsui Banking Corporation. This credit line primarily provides yen-denominated credit, with dollar-denominated credit exceptionally extended if deemed necessary, to support Japanese exports.
- To support exports by Japanese companies, the loan creates a credit line for SBERBANK to meet the medium and long-term financial needs of Russian companies in their purchase of machinery and equipment from Japan. Denominated in yen and dollar, this credit line will offer greater convenience for Russian companies and promote machinery and equipment purchases from Japan, thereby helping to expand exports by Japanese companies.
- With the economic crisis of August 1998 behind it, the Russian economy has registered steady growth in the past few years. GDP growth rate increased to 7.3% in 2003, and is forecast to register 7.3% again in 2004. Demand for capital investment is expected to increase in the coming years in anticipation of sustained growth. It was against this backdrop that Prime Minister Koizumi signed the Japan-Russia Action Plan with President Putin during his visit to Russia in January 2003. The Action Plan called for both sides to examine the possibilities of providing credit based on the credit standing of Russian firms and banks to help promote bilateral trade and economic activities. The provision of the credit line stands on this Action Plan.
- This is the third credit line JBIC has provided to Russia, following the credit lines for Bank for Foreign Trade (VTB) and International Moscow Bank (IMB) in March 2002 and June 2003, respectively. By creating a credit line for SBERBANK, the largest commercial bank in Russia, JBIC will promote Japanese exports of equipment and machinery to Russia, thereby encouraging the further development of trade and economic relations between Japan and Russia.