Promsvyazbank and Commerzbank Will Double Size of Loan Agreement
OREANDA-NEWS. On 12 February 2008 was announced, that Promsvyazbank (PSB) and Commerzbank agreed to increase the amount of the loan agreement dated 2004 to 100 million euros from previously 50 million euros. According to the terms of the agreement, PSB can draw down credit resources guaranteed by Euler Hermes credit insurance agency to provide medium-term and long-term financing for its clients for purchasing industrial merchandise and services from Germany.
“The increase in the contractual amount of the loan agreement with Commerzbank will enable PSB to augment financing for its clients, and therefore support a positive trend in co-operation between Russia and Germany in the fields of commerce and economy,” noted Alexey Fedotkin, Vice-President and Head of the Corporate Block at PSB.
Earlier, in May 2006, Commerzbank had already increased the loan amount to 50 million euros from 25 million euros, due to increased demand for this type of financing among importers – customers of PSB. The co-operation between PSB and Commerzbank in the area of medium-term and long-term financing started in 2003. Commerzbank is a minority shareholder of PSB, with a 15.32% share in PSB’s capital.
PSB works closely with a number of leading German banks in the field of medium- and long-term financing. Since 2003 the aggregated amount of projects financed under Euler Hermes guarantees has totaled US$ 300 million.