OREANDA-NEWS. July 20, 2010. In the course of holding Russian-German consultations at the summit level in the city of Yekaterinburg, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Banking Group KfW signed a Letter of Comfort on Implementing Programs of Cooperation in Supporting SMEs and innovations.

On behalf of Vnesheconombank the Document was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of KfW – by its First Vice President Dr. Lutz Funke.

The Letter of Comfort was signed by to build on the Memorandum of Understanding concluded between Vnesheconombank and KfW on the German-Russian Innovations and Modernization Program. The Memorandum was signed in April of 2010. The Letter of Comfort provides for opening a credit line for Vnesheconombank’s subsidiary bank, the Russian Development Bank, in the amount of 100.0 million euros. The said funds will be used for expanding the current Program of Supporting Small and Medium-Sized Enterprises and will allow to make debt financing more affordable for SMEs involved in implementing innovations and modernization projects.

A letter of comfort is a prerequisite for opening a credit line for the Russian Development Bank.

Vnesheconombank and KfW believe that the opened credit line would improve terms of lending to SMEs including those operating in the innovation sector.