OREANDA-NEWS. October 29, 2009. In the course of the Forum “Development of Small and Medium-Sized Enterprises under the Conditions of the Financial Crisis”, State Corporation ‘Bank for Development and Foreign economic Affairs (Vnesheconombank)’, German Banking Group KfW IPEX-Bank GmbH and the Government of the Republic of Tatarstan entered into a Memorandum on Cooperation.

The Memorandum aims to promote cooperation in implementing projects to support small and medium-sized enterprises in the Republic of Tatarstan.

Cooperation in promoting leasing for supporting SMEs is seen by the parties as their first joint project.

Under the project KfW IPEX-Bank GmbH is to extend credit resources to Vnesheconombank’s subsidiary banks against Vnesheconombank’s guarantee. In their turn, these banks would extend credits to leasing companies for them to purchase agricultural equipment for leasing it out to small and medium-sized enterprises in the Republic of Tatarstan. Vnesheconombank’s participation in implementing the project is conditional on the Tatarstan Government’s co-financing of small and medium-sized enterprises’ leasing projects.

The Memorandum was signed to build on the Framework Credit Agreement concluded in July 2009. The Agreement provides for KfW IPEX-Bank GmbH to extend credit resources to Vnesheconombank in the total amount of 500 million euros against export credit agencies’ insurance coverage.