Translated material
Effective financing is the engine of trade
According to statistics, the growth rate of foreign trade volumes is far ahead of other macroeconomic indicators. At the end of 2005, foreign trade turnover increased by 32%, amounting to $370.4 billion, while, as is known, the growth of industrial production over the past year was 4%, and the volume of investment in fixed capital increased by 10.5%. The problems that were the focus of attention of the conference participants were what are the possibilities for effective distribution and syndication of trade risks, cost optimization, as well as the development of an agent network and the introduction of modern technologies.
Vnesheconombank, carrying out a number of functions as an agent of the government, is also an active player in the field of servicing trade operations. “Over the past years, Russian companies have been actively attracting foreign trade loans to achieve their goals,” said Sergei Lykov, Deputy Chairman of Vnesheconombank, opening the conference. “As you know, such financing provides increased opportunities for optimizing costs and makes it possible not to provide direct lending to Russian companies, to use risk sharing, as well as various options for combining the efforts of the banking community to finance foreign trade turnover.”
In the field of trade finance, VEB, having limits on a large number of Russian and foreign banks, provides services to confirm the obligations of its correspondent banks. By taking on the risks of these financial institutions, VEB ensures the attraction of foreign financing to clients of many Russian banks who do not have sufficient limits from foreign banks. The volume of related credit lines opened as part of such activities at VEB during 2005 amounted to $549 million and €375 million.
In this regard, understanding its connecting position in many similar transactions designed to provide additional financial resources to the country's economy, VEB takes an individual approach to each specific transaction. “The cost of financing is determined individually,” said the deputy chairman of VEB. “At the same time, the focus is not so much on the income from a particular transaction, but on increasing the volume of transactions designed to support Russian business.” At the same time, Vnesheconombank, whose tasks include supporting non-resource exports, sees high-tech industries as its priorities - aircraft manufacturing, shipbuilding, automotive manufacturing, instrument making, nuclear industry, communications and telecommunications.
Participation in trading operations with Russian companies also looks like an attractive business for foreign banks, even if historically this was not part of their area of interest. “Initially, we sought to develop the corporate direction of our business as much as possible,” Richard Lightbound, director of the global trading service of one of the largest American banks, Wachovia (the bank is the fourth largest in the United States and is one of VEB’s foreign partners), said at the conference. -- Approximately 95% of our clients are located in the United States, but we do not stand still and follow our clients, expanding our branch network, trying to meet their needs for modern high-tech banking products. We are currently rapidly developing cooperation with Russia.” According to the banker, it is obvious to many American financial institutions that the Russian economy is strengthening, and local businesses need additional funds to expand their activities.
Sergei Lykov emphasized in his speech that Vnesheconombank is one of the most active participants in establishing relationships between Russian and foreign banks. And this fact cannot be discounted when determining the functions of the state development corporation being created on the basis of VEB. Mr. Lykov noted that within the framework of discussions on this topic, the question is raised whether it should be given banking functions. “We think it should,” he said. According to him, the structure and image that Vnesheconombank has already developed allows it to be used to provide assistance in various sectors of banking activities. In particular, as a priority strategic goal for the coming years, the bank considers a significant expansion of the scope of its participation in large investment projects, the implementation of which is designed to contribute to the development of infrastructure and high-tech industries in the real sector of the economy. The effect of implementing such a strategy will allow Vnesheconombank not only to implement innovative projects, but also to promote development in other sectors of the economy. Giving up banking functions would mean giving up an effective tool for realizing these opportunities. According to Sergei Lykov, when determining the future fate of VEB, it is necessary to take into account “not only purely scholastic examples and arguments on development models, but also the specific situation at the current stage of economic development.”
However, Anna Popova, director of the corporate governance department of the Ministry of Economic Development, made it clear in an interview with Interfax on Friday that the disputes around the concept are over, and the bill on the Development Bank can be agreed upon by the end of October. It was recently reported that one of the interested departments is proposing to return to the idea of creating a debt agency on the basis of VEB, but, apparently, the logic of the representatives of the bank itself has won. “The concept is there, and it will not change: the Development Bank will be created on the basis of three banks - Vnesheconombank, Roseximbank and the Russian Development Bank, without a debt agency and a state management company,” she emphasized.