OREANDA-NEWS. May 05, 2010. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ extended to Kreditanstalt fur Wiederaufbau (KfW), Germany two banking guarantees to secure NDB Bank’s obligations (the city of Nizhny Novgorod) for an amount of 16.25 million US dollars and AKBs Spurt’s obligations (the city of Kazan) for an amount of 10.8 million dollars against long-term credits extended by KfW Bank.

Relevant credit agreements were concluded between KfW and AKB Spurt and NDB under the German-Russian Initiative on Financing Small and Mediu-Sized Enterprises. Under the agreements, after receiving Vnesheconombank’s guarantees KfW is to extend credits to NDB Bank and AKB Spurt for an amount of 15 million US dollars and 10 million dollars respectively. Credit resources are to be provided for a period of 5 years in order to further finance Russian small and medium-sized enterprises (MSE).

The Agreement on the German-Russian Initiative on Financing Small and Medium-Sized Enterprises was signed by Vnesheconombank and KfW Bank in February of 2009.