Trade Finance

The Bank is one of the trade finance leaders among medium-sized Russian banks. A worldwide network of partnering banks enables CBM’s clients to get short- and long-term trade financing via confirmed letters of credit and guarantees. CREDIT BANK OF MOSCOW has been actively operating in long-term (structured) and short-term trade finance markets since 2001, demonstrating a sustainable increase in the scope of these transactions.

In June 2005 CBM joined the Trade Facilitation Program (TFP) of the European Bank for Reconstruction and Development (EBRD) and in February 2006 was the first Russian issuing bank to join the Global Trade Finance Program (GTFP) of the International Finance Corporation (IFC). Starting from 2008 CREDIT BANK OF MOSCOW has been awarded by these international financial institutions as follows:

IFC – GTFP

• 2010: Certificate as the most active issuing bank in Eastern Europe
• 2009: Certificate as the most active issuing bank in Europe and Central Asia
• 2008: Certificate as the most active issuing bank in Europe and Central Asia

EBRD – TFP

• 2010: Certificate as the most active issuing bank in Russia in short-term trade finance

In 2010 the Bank facilitated 259 trade deals for the total amount of USD 408mln, which represents a twofold increase in volumes comparing with 2009 results. As of 1 October 2011 CBM has already overperformed its TF results of 2010 having facilitated more than 300 transactions for the amount of over USD 600mln.

CREDIT BANK OF MOSCOW holds a valid registration with the Russian customs authority.

Co-operation

• Co-operation with Hermes and AKA (Ausfuhrkredit-Gesellschaft mbH)

  Co-operation with Hermes and AKA (Ausfuhrkredit-Gesellschaft mbH)
  

  On August 15, 2002 in Frankfurt-on-Main JSC «CREDIT BANK OF MOSCOW» and German banking consortium AKA (Ausfuhrkredit-Gesellschaft mbH) that consolidates about 32 German banks, signed basic Loan Agreement providing for crediting of equipment and technologies supplies for Russian enterprises.

  The distinctive feature of this Agreement is that the parties considered possible not to limit the total amount of the crediting to be carried out through CREDIT BANK OF MOSCOW.

• Co-operation with Hermes and Commerzbank

  Co-operation with Hermes and Commerzbank
  

  • CBM and Commerzbank AG long-term loan agreement against Hermes insurance coverage (Germany)
  • Press Conference
  • Text of the speech
  • Review of opinions and judgements about the press conference

• Co-operation with Landesbank Berlin AG, Bayerische Hypo- und Vereinsbank AG and Сommerzbank AG (ex Dresdner Bank AG)

  Co-operation with Landesbank Berlin AG, Bayerische Hypo- und Vereinsbank AG and Сommerzbank AG (ex Dresdner Bank AG)
  

  In October 2003 CBM and Bankgesellschaft Berlin AG (currently LANDESBANK BERLIN AG) concluded Basic Agreement for partial long- term financing of purchase contracts for the delivery of capital goods and respective services by German exporters to importers in Russian Federation under the insurance cover of Euler Hermes Kreditversicherungs-AG. The financing is available for the period of up to 5 (five) years and more.

  It allows Russian companies (CBM’s customers) to modernize their equipment facilities by attracting long-term and low costing funding from international financial markets.

  In April 2004 and September 2004 CBM concluded analogous Agreements with Bayerische Hypo- und Vereinsbank AG and Dresdner Bank AG (currently Commerzbank AG) accordingly for the financing of deliveries of capital goods and services by German and Austrian exporters into Russia.

• Co-operation with US Export-Import Bank

  Cooperation with US Export-Import Bank
  

  Following the strategy of diversifying of bank services on organization of short-term and long-term financing of foreign trade deals of the bank’s customers with the partners from the USA, Credit Bank of Moscow established operative interaction with financial and non-commercial organization in the USA, which promote development of American-Russian foreign trade exchange. First of all we shall mention Export-Import Bank of the United States as one of such organizations.

  Participation in guarantee and insurance programs of Export-Import Bank of the United States allows to attracts short-term and long-term foreign financing sources for machinery and equipment, as well as consumer goods US delivery deals.

  Among US Ex-Im Bank’s programs the following should be marked specially:

  • Short Term (Up to 360 Days)
    • Working Capital Guarantees (US Exporters)
    • Export Credit Insurance (US Exporters)
    • Bank LC Insurance (Foreign banks)
  • Medium/Long Term
    • Project Finance (usually deals of $50 million +)
    • Direct Loans (usually deals of $25 million +)
    • Guarantees (best for deals of $10 million +)
    • Medium Term (Up to 5 years) Insurance (deals less than $10 million)

• Co-operation with the United States Department of Agriculture

  Co-operation with the United States Department of Agriculture
  

  In December 2002, the United States Department of Agriculture has ranked Credit Bank of Moscow among 11 Russian banks approved for participation in realization of the programs for advantageous financing of U.S. agricultural products and equipment sales to Russia (GSM-102, GSM-103 and FGP). The Bank has been granted respective credit line for the amount of USD 7,7 million.

  From this moment forth, Credit Bank of Moscow’s customers will have the possibility of purchasing goods, eligible under the above programs, from the USA on terms of deferred payment under the guarantees extended by the United States Department of Agriculture. Such guarantees existence makes it possible to reduce the cost of financing for the final borrower (the importer) by means of refinancing/confirmation by U.S. banks of the approved Russian bank’s obligations on preferential terms.

  General Sales Manager (GSM-102/103) are the export credits programs applicable for the range of agricultural products that is annually adjusted.

  GSM-102 program covers credit terms from 90 days to 2 years. Before the year 2003 such credit terms established for Russia did not exceed 360 days. GSM-103 is a special-purpose program providing for credit terms from 3 to 7 years. Since 1998 financial crisis and until 2003 this program’s realization in Russia was suspended.

  In order to obtain export credit under GSM programs, Russian bank issues uncovered L/C with deferred payment and the United States Department of Agriculture extends guarantee. If necessary, such guarantee could serve as the reason for provision of advantageous credit line that is sufficient for Exporter to perform his contract obligations.

  Facility Guarantee Program (FGP), the program of guarantees applicable for sales of U.S. equipment, provides for financing of the sales of equipment for transportation, storage and processing of agricultural products and covers credit terms up to 3 years.

  Generally, 85% of the contract amount is covered, 15% importer will have to pay in advance out of own funds. The equipment supplied under this program has to be at least 50 % of American origin and must «primarily promote the export of U.S. agricultural commodities and products». USDA will consider projects with foreign components and services by third parties only if such components and services combined value represents less than 50% of the contract amount.

  Exporter’s applications for financing under the abovementioned programs have to be filed to United States Department of Agriculture no later than September 30,2003.

  Further information about these programs is available at USDA Foreign Agricultural Service home page: www.fas.usda.gov.