OREANDA-NEWS. December 22, 2010.  In the course of Russian President Dmitry Medvedev’s formal visit to the Republic of India, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Eximbank Bank of India (the Export-Import Bank of India) entered into a Memorandum of Understanding.

On behalf of Vnesheconombank the Memorandum was signed by Vnesheconombank Chairman Vladimir Dmitriev and on behalf of the Eximbank of India – by its Chairman and Managing Director Mr. T.C.A.Ranganathan.

The Memorandum provides for an opportunity to expand the use of financial resources being provided by the Eximbank of India under the Frame Agreement signed by financial institutions in December of 2009. The total amount of the credit line is up to 100 million US dollars.

Under the Memorandum the parties agreed to consider an opportunity to use financial resources provided by the Eximbank of India to implement the government program of providing financial support for small and medium-sized enterprises carried out by Vnesheconombank through its subsidiary bank, the Russian Development Bank (OJSC).

At present, Vnesheconombank performs functions of a payments center responsible for servicing investment cooperation and trade turnover between Russia and India. The center is financed through using funds being received to repay India’s government debt.

Vnesheconombank’s correspondent network incorporates 34 leading financial institutions including such large Indian banks and foreign banks branches as the Reserve Bank of India (the country’s central bank), the State bank of India, the Export-Import Bank of India, ICICI Bank Ltd, Deutsche Bank (Mumbai), HSBC Bank (Mumbai) and others. Vnesheconombank entered into a Frame Credit Agreement with the Export-Import Bank of India as well as Agreements on Cooperation with the Canara Bank and ICICI Bank Ltd.

As part of supporting Russian industrial exports to India, Vnesheconombank issued 41 banking guarantees in favor of Indian companies for a total amount of 20.6 million US dollars for a period of 2008-20210.