OREANDA-NEWS. March 22, 2007 according to this agreement, Promsvyazbank will be provided with a US$30 million line of credit. The initial amount of credit may be further increased upon utilization. Each tranche is due for repayment within 1 year. The signing of this agreement will help Promsvyazbank expand its trade finance capability for its customers doing trade with China, reported the press-centre of  Promsvyazbank. According to Artem Konstandian, senior vice-president and director of international business department of the Bank, this agreement is very important for Russia’s banking community. "For the first time in history Bank of China signs an agreement with a Russian bank which in addition to traditional documentary instruments contemplates post-financing of letters of credit. - said Mr.Konstandian.


The development of business with the countries of the Asia Pacific region, and primarily with China, is regarded by Promsvyazbank as one of the top priorities in its commercial activities. Since 2004 the Bank has been running a representative office in China. The Bank has established correspondent relationships with all top Chinese banks. The availability of credit risk limits from Chinese banks will allow Promsvyazbank to provide its Russian customers with such facilities as trade finance and international factoring thus enabling them to carry out settlements with Chinese partners on more favorable terms. Promsvyazbank is recognized as one of Russia’s leaders in international trade and export finance. In 2006, the bank carried out transactions of this kind worth US$1,5 bln. including 30% of their total volume between Russian and Chinese companies.