Vnesheconombank's Legal Directorate took part in the 8th St. Petersburg International Legal Forum.
The Bank organized the session “Vnesheconombank’s role in transforming Russian economy: changes in regulation, the project financing factory, syndication, high technology and export projects” to encourage public discussion of the new federal laws approved by the President at the end of 2017 creating the regulatory framework for Vnesheconombank’s implementation of its new Strategy 2021 and unlocking the potential of syndicated loans. The session was moderated by Mikhail Rasstrigin, Deputy Economic Development Minister.
Vnesheconombank’s Senior Vice President and Head of Legal Directorate Igor Krasnov told about changes made to the Law “On Bank for Development”. “The amendments introduced to the Federal Law “On Bank for Development” allowed us to substantially revise the options available to Vnesheconombank for investing in Russian economy and to launch the Bank’s new business model while addressing the existing issues. Moreover, the new legislation sets in law tools which can be used by Vnesheconombank to provide comprehensive financial and guarantee support for projects and transactions aimed at expanding supplies of high-tech products to foreign markets. The amendments are not just some minor changes. In effect, they form a new version of the law. This will allow Vnesheconombank to focus on its investment priorities and use new forms of project finance. The new law establishes a uniform risk management system in VEB Group and determines the development strategies of the bank’s core subsidiaries. Importantly, the law provides for a number of new tools such as syndicated lending, mezzanine financing, partner financing and investment consulting. Thanks to this measures, Vnesheconombank will be able to efficiently deliver its development strategy 2021 and to become a leader in long-term financing for Russia’s most important economic development projects,” said Igor Krasnov.
“Vnesheconombank has already been playing an important role in realising the potential of syndicated lending. Vnesheconombank took an active part in developing the federal law on syndicated loans that took effect in February 2018. The need for a legislative framework for syndicated loans was seen both by the banking community and government authorities,” said Roman Fomin, Senior Managing Director of Legal Support Department, Vnesheconombank’s Legal Directorate. “The law, inter alia, establishes the syndicated loan concept and expands the composition of participants on the primary syndicated loans market.”