VNESHTORGBANK GIVES 70 MLN RUBLES TO CHECHNYA

MOSCOW, February 7 (RIA Novosti) - The Russian bank Vneshtorgbank will grant a 70 million-ruble credit ($1 = 27.98 rubles) to the Chechen Republic for the construction of a plant, Avtomatstrom, which will produce plastic pipes, President-Chairman of the Bank's board Andrei Kostin said after signing the agreement on cooperation with Chechnya's government.

Apart from that, he continued, the Bank's representatives discuss the possibility of assembling light trucks in the republic with the senior officials of the Chechen Economic Ministry.

"In the next few months we shall make progress also in other projects," Mr. Kostin added. According to them the range of the Bank's work in the republic is very broad.

"Against the background of the nascent settlement in Chechnya, the grounds have been created for economic growth and for the activity of the Vneshtorgbank in the republic," the Bank's head said.

He reminded the audience that at the end of 2004 the Bank started working Grozny. It provides banking services to civilians and servicemen. It has already installed the first cash machine in the republic and plans to open a currency exchange point in the near future.

The Bank's Grozny branch also services state structures, the institutions in the budgetary and social spheres and Russian companies. According to Mr. Kostin, the bank also plans to start joint work with the Rosneft regional branches and the Unified Energy Systems of Russia.

The Bank intends to expand its activity in Chechnya. As is expected, its branches will be opened in Urus-Martan and Gudermes, the Bank's head said.

Vneshtorgbank, jointly with Savings Bank, intends to take part in the program for restoring housing in the Chechen republic, Mr. Kostin said.

"The state allocates serious resources for this program. We are ready to take part in it," the Bank's head continued. The Bank intends to also develop a mortgage-lending program in Chechnya with the support of the government.

Mr. Kostin did not specify what part of the budgetary means the Bank will be able to serve, he said in response to a question about the prospects of the Bank's work with budgetary means in Chechnya. He only said that apart from Vneshtorgbank, the Central Bank and Savings Bank are also working in the republic.

I hope that the government will call on us for work with budgetary means, but we hope all the more to work with business, Mr. Kostin underscored.