GERMAN BANK CREDITS IMPORTATION TO RUSSIA OF LIGHT AND FOOD INDUSTRY EQUIPMENT

MOSCOW, July 5 (RIA Novosti) - Vneshtorgbank (VTB) and AKA Ausfuhrkredit-Gesellschaft mbH (AKA) signed credit agreements envisaging long-term financing of importation by a number of Vneshtorgbank clients of German equipment against insurance coverage of the Germes export insurance agency, says the Russian bank's press release.

The total sum of the credits granted under agreements signed Monday is about 40 million euros.

Co-financing banks on interbank agreements between VTB and AKA were Germany's biggest banking institutions - Dresdner Bank AG, Kommerzbank AG and Bankgesellschaft Berlin AG.

Borrowed funds attracted by Vneshtorgbank for the term of 6.5 years are envisaged to finance production modernization programs of Vneshtorgbank clients who represent the light and food branches of industry.

The agreements are signed in the framework of the basic credit agreement concluded between the two banks in September 2001, which envisages the financing of equipment importation against Germes guarantees through Vneshtorgbank to the total sum of up to 250 million euros.