As the contract has it, the two banks will join hands on project, corporate and commercial financing. Some transactions will have guarantees of the German-based Euler Hermes export insurers.
According to the framework agreement, KfW will open to Vneshtorgbank a credit line to a lump hundred million euros to fund 85 per cent of contracted sums for Russia to import industrial commodities and equipment from Germany and other European countries. The loans, for a ten year ceiling term, will be guaranteed by Hermes and similar export insurance agencies basing in other involved European countries, the VTB says in a public statement.
KfW-IPEX, on the KfW banking group, engages in project and corporate financing in and outside Germany, and export financing. Total KfW-IPEX-Bank loans for the first half-year 2004 roughly amounted to 4.9 billion euros.
