New loan insurance to help Russian exporters
Russian exporters will be able to get cheap loans thanks to the new Export Insurance Agency of Russia (EXIAR), created by state-run VEB bank. The aim is to allow for diversification of Russian export away from oil and gas.
The head of EXIAR Peter Fradkov, says it will insure loans provided by Russian banks to the local exporters. The main idea is that the state will secure the risks taken by exporters, which in turn, should make bank loans cheaper.“International practice is simple and clear – for example in order to support Bombardier of Canada or Embraer from Brazil export development institutions provide exporters with 3-4% loans for 10-15 years. That’s the idea. Certainly, Russian banks cannot provide, for example, United Aircraft Company the makers of the Sukhoi airliner with such resources,” says Fradkov.The program is expected to make exporters more competitive on the global market.The agency expects to cover up to 300 billion Russian rouble of exports in three years.