OREANDA-NEWS. Otkritie FC Bank and the Export Insurance Agency of Russia (EXIAR) have signed a cooperation agreement. The purpose of the agreement is to implement a joint programme for the provision of loans to export-oriented small and medium-sized enterprises with the insurance support to be provided by EXIAR as part of an insurance product called “Insurance of Working Capital Loans Provided to Exporters”.

As part of the programme, the Agency will cover up to 70% of default risk associated with the loans extended to exporters. To participate in the programme, the maximum annual proceeds of the exporting company should not exceed RUB 2 billion. The programme provides for a simplified procedure for underwriting the loans granted to increase exporters’ working capital by up to RUB 20 million for each particular borrower. The programme does not limit the maximum amount of the working capital loans. EXIAR’s insurance cover will enable small and medium-sized enterprises to raise, for up to two years, pre-export loans of up to 80% of the amount of the relevant export contract against the right to claim the export proceeds under the contract. The cooperation between Otkritie FC Bank and EXIAR will help small and medium-sized businesses expand their export trade.

Export Insurance Agency of Russia (EXIAR) was established in 2001 for the purpose of supporting high-technology exports by insuring credit and political risks associated with export loans and by insuring Russian investments abroad against political risks. The sole shareholder of EXIAR is Vnesheconombank. The agency’s authorised capital is RUB 31 billion.