Long-term financing is better
Development Bank plans to attract new Eurasian syndicated loan
“We plan to finish the bargain for a new, purely European syndicate in August. The conditions proposed to the Development Bank are comfortable,” notes the Chairman of the Development Bank’s Board, Sergei Rumas.
Meanwhile, Sergey Stolyarchuk, the Head of the Development Bank’s International Business Department, explains that the bank doesn’t play on the same field as commercial banks. “We’re shifting from short-term to long-term financing, using the lowest rates. State funding will be provided by the World Bank, with repayment over 15-20 years,” he added, stressing that this year’s funding will be in lesser volumes. “We don’t need to attract major sums, so we’ll take out a smaller loan than last year,” he summed up.
The Chairman of the Development Bank’s Board notes that the bank recently repaid a syndicated loan, attracted in 2015.
The Development Bank has developed a loan aiming to stimulate demand for wood-processing goods.
Mr. Rumas tells us, “We’ll launch two new products to support small and medium-sized businesses. The first product, created with the UNDP, aims to support female entrepreneurship and business development in small towns, while the second aims to stimulate consumer demand for timber processing goods.”
Mr. Rumas underlines that both products will be affordable and borrowers can expect comfortable terms. “We’ll be implementing them via our banking-partners,” he asserts.
By Mikhail Overyanov