New SPIEF Agreements
IBEC delegation continues its active work at the St. Petersburg International Economic Forum. On the second day, a Cooperation Agreement with the largest Russian financial development institution VEB.RF was signed. The document, which was signed by Daniil Algulyan, Deputy Chairman of VEB.RF, and Denis Ivanov, Chairman of the IBEC Board, provides for cooperation in export and trade financing, as well as in the field of investment projects implemented both in Russia and in other IBEC member states.
“Currently, we and our partners from the International Bank for Economic Co-operation define priority areas and the pipeline of projects,” said Daniil Algulyan.
“I am sure that the partnership between VEB.RF as the largest Russian development institution and IBEC as an international development institution will help unlock significant potential of our organizations in facilitating the development of the eight IBEC member states through the implementation of joint projects, development of exports and integration of companies into global value chains,” noted Denis Ivanov.
The financial institutions plan to use the following loan and documentary tools of export and trade financing for the implementation of projects:
- documentary letters of credit, guarantees, bank-to-bank reimbursement arrangements;
- trade loans for trade financing, including pre-export, post-export, pre-import, and post-import financing;
- participation in syndicated lending in areas that meet the interests of the parties;
- financing of foreign economic operations against the coverage by ECA;
- factoring and forfeiting.
The parties also agreed to exchange information related to the banking practice of export and trade financing in the IBEC member states.
Also, on the margins of the St. Petersburg forum, a Memorandum of Cooperation was signed with the All-Russia Public Organization Business Russia, one of the leading national business associations.
The document provides for the facilitation of trade and industrial cooperation between economic entities of the IBEC member states, development of priority economy sectors, creation and implementation of innovations. The joint work will focus on the development of the transport infrastructure, energy, agriculture, healthcare, as well as on the renewable green energy projects.
In order to achieve the goals set in the Memorandum, the IBEC and Business Russia plan to hold joint events for companies of the IBEC member states, build up joint research and expert teams, invite experts to participate in bilateral and multilateral commissions engaged in the development of economic relations between the IBEC member states. The agreement formalized the existing fruitful contacts between the bank and the public organization.
In particular, in the middle of May, a business breakfast organized by Business Russia was held with Chairman of the IBEC Board Denis Ivanov. The breakfast was devoted to potential cooperation of the multilateral development bank and representatives of the business community.
The goals of cooperation with Business Russia include assistance in establishing partnerships with enterprises and organizations that plan to perform operations in the IBEC member states, as well as with economic entities of the IBEC member states that need high-quality banking services, including comprehensive cash management and payment services, conversion transactions, trade finance services, as well as long- and medium-term lending. Thus, the IBEC gets the opportunity to use Business Russia’s platforms to promote its unique products aimed at the development of international trade and foreign economic cooperation.