BSTDB Starts Its Trade Finance Programme in Russia

Press Release | 21-May-2001

The Black Sea Trade and Development Bank (BSTDB) will extend a revolving credit line for the amount of US$ 10 million to the Vneshtorgbank (Russia) for Pre-Export Finance Facility.

Vneshtorgbank will use the Facility to provide working capital to Russian exporting companies, thus promoting exports in the Russian Federation. In addition to receiving pre-export financing, Russian exporters will be able to offer attractive deferred payment terms to their buyers, which will increase their competitiveness. Maximum tenor of each transaction under the Facility will not exceed 180 days, enabling the Vneshtorgbank to finance at least USD 20 million of export transactions a year.

With this operation BSTDB starts implementing its trade finance programme in Russia, following similar facilities already provided by BSTDB through its financial intermediaries in Türkiye, Romania, Bulgaria and Georgia to the total amount of US$ 30 million. BSTDB is expanding its trade finance programme and diversifying financial products. So far, BSTDB has selected 32 financial intermediaries in the member countries for its trade finance operations.

Vneshtorgbank (Bank for Foreign Trade) is the first financial intermediary selected by BSTDB for its trade finance programmes in the Russian Federation. Being a 99.9 % subsidiary of the Central Bank of Russia, Vneshtorgbank is the largest commercial bank in Russia in terms of equity, and the most experienced one in trade finance operations.