Recovery of Debts on Credits, Received at the Expense of Centralized Funds, from Russian Borrowers
One of Vnesheconombank’s main lines of business as an agent for the Government is to recover credits extended earlier to Russian companies at the expense of federal budgetary funds.
The Bank’s highly qualified lawyers and economists are making constant efforts to improve existing and develop new methods to recover budgetary funds from Russian customers of imported goods purchased at the expense of credits attracted against guarantees of the Russian Government.
In order to recover credits we use the following instruments:
- customers’ Debt Liabilities and Loan Agreements;
- guarantees granted by first-class Russian commercial banks against customers’ liabilities;
- opening blocked funded accounts with Vnesheconombank by customers to make payments on Debt Liabilities and Loan Agreements;
- share pledge agreements;
- direct payment guarantees granted by Russian Federation constituent entities in favour of the Russian Finance Ministry (in the form of surety agreements);
- enforcement of overdue debts judicially;
- set-off of counter claims;
- enforcement through bankruptcy aimed at attracting potential investors or making amicable agreements with debtor companies.
In 2008, the amount of borrower companies’ settled debt liabilities to the federal budget was 885 million US dollars.