OREANDA-NEWS. December 9, 2009. In the context of the International Conference “The Modernization of the Russian Economy: The Role of Development Institutions” organized by State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, Vnesheconombank and the European Bank for Reconstruction and Development (EBDR) entered into a Memorandum of Understanding.

On behalf of Vnesheconombank the Document was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of the EBDR – by its President Thomas Mirow.

The Memorandum provides for Vnesheconombank and the EBDR to participate in the Program of Extending Long-Term Financing to Russian Small and Medium-Sized Enterprises (SME) in equivalent of up to 500 million euros.

Under the Document financing is be extended to SMEs that at present have limited access to long-term financial resources through partner banks identified by Vnesheconombank and the EBDR. Credits are expected to be extended to banks against Vnesheconombank’s guarantees in the absence of which such financing would be impossible.

The Program’s implementation is scheduled to start in the first half of 2010; about ten banks will participate in it.

The implementation of this program would make it possible to underpin the Russian Government policies aimed at supporting Russian small and medium-sized enterprises and at diversifying the Russian economy.