Russia's Vneshtorgbank receives $240 mln loan from Western banking community

Russia's Vneshtorgbank, or the foreign trade bank, has signed an agreement with the Western banking community on receiving a $240-million loan.

The syndicated loan, i.e. a loan provided by two or more lending institutions, is to be granted by 32 banks from 17 countries, including such giants as CityBank and Deutsche Bank AG.

The fact that the deal was stricken proves that the western banking community is growing more confident in Russia's banking system and economy at large, Vneshtorgbank President Andrei Kostin said in Moscow on Thursday, following the signing ceremony.

Originally, the loan was to total $100 million. However, with more banks having joined in, the sum went up to $240 million.

$128 million of the sum have to be repaid in a year, the remaining $112 million in 18 months.

Vneshtorgbank will use the money to boost funding of its Russian customers' trade transactions, said Mr Kostin.

Among the banks that contributed to the loan are banks of Germany, the US, Japan, Austria, the Netherlands, France, Greece, Israel, Poland, Turkey, Czechia and Italy.

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