OREANDA-NEWS. February 4, 2009. In Moscow, state corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and Kreditanstalt fьr Wiederaufbau Bankengruppe (KfW Bankengruppe) signed an Agreement on the German-Russian Initiative for SMEs Financing.

On behalf of Vnesheconombank, the document was signed by Vladimir Dmitriev, Chairman. KfW Bankengruppe was represented by Wolfgang Krogh, Member of the Managing Board, and Doris Koehn, Senior Vice President.

The Agreement is aimed at rendering assistance to Russian small- and medium-sized enterprises (SMEs). To this end, it envisages providing medium-term finance for SMEs, as well stimulation of entrepreneurial activities in regions and support for banks that grant credits to SMEs.

In accordance with the Agreement, to finance SMEs, KfW Bankengruppe will extend to Russian commercial banks against the guarantee of Vnesheconombank targeted loans for the total amount of EUR 200 million.  The loan tenor is up to 5 years.

Given the fact that when selecting SMEs eligible for financing priority is to be given to projects, which aim, among other things, to develop and introduce energy-saving technologies, the implementation of the Agreement would also contribute to improved environmental protection.

The Agreement signed might be viewed as a continuation of the Agreement on Cooperation signed in July 2007 between Vnesheconombank and KfW Bankengruppe.