11 July 2001
This Agreement assumes joint activities of the above Association and the Bank with the purpose of creating the complete set of provisions that would ensure ready access to modern credit and investment products for the farmers, cooperatives and other farmer associations. The Agreement stipulates exchange of information, consulting services to the businesses concerned, setting up working groups for the joint financial projects development, including funding construction works of processing enterprises for mutual processing by farmers and their associations of their products. The Agreement also envisages delivery and providing farm businesses with agricultural machinery and equipment on the basis of lease arrangement.
The Agreement has become a further step in developing cooperation of the bank Vozrozhdeniye with the agro-industrial sector of Russia. For ten years of its operations the Bank acquired a lot of experience in interaction with this sector. As the farmer segment stabilized in the society, cooperation of V.Bank with independent farmers and farmer associations strengthened. The Bank considers financial servicing of farm enterprises one of its priorities in relation to the agro-industrial sector. It is noteworthy, that Vozrozhdeniye has always participated in the banking pool through which businesses have been granted loans from the special Fund for preferential lending to the agro-industrial sector. For the period of its work activities the Bank granted RUR 1.9 bl loans to over 1000 agricultural and processing enterprises throughout 40 regions of Russia. For the first half-year 2001 alone, V.Bank extended to the borrowers of this category over RUR 800 ml loans including over RUR 350 ml subsidized loans, i.e. loans with subsequent reimbursement to a borrower of a certain percentage of the interest rate for account of budget funds.
Over the recent years the Bank granted RUR 11.5 ml loans to the farm enterprises alone from the special Fund for preferential lending. On top of that, lending to the farmers continues under a new compensation scheme of subsidized loans. As before, V.Bank is going to render assistance to the farmers in the form of crediting seeds and planting material deliveries, spare parts for agricultural machinery, etc.
The recent Agreement is aimed at further development of relationships with the farmers across nearly twenty Russian regions covered by the branch network of Vozrozhdeniye and adjoining regions as well.