Russian Prime Minister Dmitry Medvedev chaired a meeting of Vnesheconombank’s Supervisory Board.
In his opening remarks, Mr.Medvedev said: “We have recently approved a set of measures to considerably renew and modernise Vnesheconombank Group in its entirety. Currently, VEB undergoes transformation outlining an equilibrium business model, which would enable the bank to efficiently deliver on the May presidential decree. In particular, VEB is to cooperate with other development institutions in financing projects pivotal for the country, primarily infrastructure and digital development projects.”
Enjoying the government’s unfailing support, VEB has launched a new investment mechanism: the Project Financing Factory. The Factory is intended for investors prepared to work in the real economy and invest in state-of-the-art technology and high-tech products and services designed for national and worldwide markets, too. “Such projects will be subject to careful selection and backed by state guarantees. We have already earmarked the required funds in the federal budget, and it is quite a considerable amount. So, we expect the respective result. On August 7, I signed an order on Russia’s state guarantees for the bond loans to be raised by the Project Financing Factory. The order also provides for RUB294 billion worth of state guarantees valid through 31 December 2040 to be issued in 2018. I hope that these decisions will contribute to the work of the Project Financing Factory,” said the Prime Minister.
The Supervisory Board also approved Vnesheconombank’s Annual Report 2017. The bank for development has met its major strategic targets for the year 2017.
Vnesheconombank’s Chairman Igor Shuvalov said: “Our objective is to become a real development institution. We must be a reliable partner to the government in delivering on the agenda established in the May presidential decree. The required legal framework including a new memorandum has been put in place. It is very important that we speedily pass through the transformation stage and together with other development institutions and commercial banks increase investment in priority projects.”
In 2017, Vnesheconombank started financing seven new investment projects totalling RUB220.6 billion. The bank’s approved commitment stands at RUB109.1 billion, of which over RUB47 billion was extended in the reporting year. Furthermore, the bank extended almost RUB66 billion in loans and guarantees to promote exports.
Vnesheconombank is efficiently performing the function of the government trust manager (GTM) ensuring 100% security of pension savings under its management. The return on such investment in 2017 stood at 8.6%, i.e almost 3.5-fold higher than the annual inflation.
Subject to earlier decisions, the Supervisory Board approved Vnesheconombank disposing of its shareholding in Globexbank through the conversion of its shares in Globexbank into the shares in Svyaz-Bank. The lending subsidiaries will be reorganized through the merger of Globexbank into Svyaz-Bank.