Audit Chamber unsatisfied with use of foreign credits

The Russian Audit Chamber has completed auditing the use of foreign credits that were attracted under the Russian government guarantee. In particular today the chamber considered the results of the use of a credit of the European Bank for the Reconstruction and Development that was allocated for a project aimed at supporting enterprises, the Information and PR department of the Audit Chamber reported to RBC.

The $200m credit was given to 16 Russian commercial banks in 1995 so that they could provide financial support to Russian enterprises. One of the reasons of the unsatisfactory use of this credit was the 1998 financial crises. The federal budget losses due to the non-implementation of this credit were about $14m.

The auditing revealed that the SBS-Agro bank gave a $10m credit for the construction of the technological center and office of the STB-KART company in 1997. However the center was not opened and the purchased equipment totaling $4m was not installed.

The materials of the audit results will be submitted to the Russian Finance Ministry, State Customs Committee, Tax Ministry and the General Prosecutor's Office.