One of Russia's new generation of joint stock banks has said it has reached an agreement with the European Bank of Reconstruction and Development (EBRD) that should widen the availability of export letters of credit (L/Cs) for its clients.

Under the agreement, EBRD will guarantee Rosbank L/Cs and other commercial financing instruments up to a value of US$20 million.

Export support

The EBRD programme will guarantee the Rosbank L/Cs and other instruments for an initial period of two years.

Funds may be used to raise EBRD loans to finance foreign trade contracts worth up to US$5 million for the Russian bank's clients.

Credit line

The agreement follows EBRD's authorisation in September of a decision to open a framework credit line of up to US$50 million in favour of Rosbank.

Established in 1993, Rosbank claims to have an expanding correspondent banking network.

The bank says its established correspondent relations include Bank of New York, Bank of Tokyo-Mitsubishi, Commerzbank AG, Credit Suisse First Boston, HSBC Bank USA, Sampo Bank, Intesa BCI, and Nordea Bank Norge.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.