Following co-operation with domestic agricultural producers Credit Bank of Moscow (CBM) has organized long term financing of import deliveries of agricultural machinery under the insurance cover EXIMBANK (USA) and export credit agency EULER HERMES
JSC Credit Bank of Moscow (CBM) attracted one more loan facility amounting to more than USD 1,2 million for import delivery financing of modern agricultural equipment produced by John Deere Agricultural Holding Inc (USA) and John Deere International Handelsgesellschaft mbH (Germany).
Funds were extended by Deere Credit Inc for 5 years under the insurance cover of EXIMBANK (USA) and export credit agency EULER HEEMES (Germany) within the framework of Loan Agreements negotiated by CBM in April, 2004 and would be used for the partial financing amounting to 85% of the contract value.
Commenting on the deal Andrey Ivanov, Vice President and member of the board CBM, expressed satisfaction with the process of developing cooperation between the Bank and John Deere Credit Inc. Certain order of the Russian bank direct interaction with the high quality agricultural equipment producer and accordingly with American financial corporation is worked through. As a result Russian agricultural growers, who are CBMs customers obtain the wide range of important advantages. As Deere Credit Inc relates to the agricultural equipment producer, foremost for the American corporation is not only the questions of selling financial instruments (credit line), but also creating necessary complex of favorable and attractive conditions of agricultural equipment purchasing for the Russian importer. Low funding costs, flexible system of selecting documentary instruments and more importantly reduced time, necessary for long-term loan attraction are of extreme importance for the agricultural company, operating in the narrow terms of seasonal manufacturing and product sales.
Taking into consideration the peculiarities of Russian agricultural growers financing, CBM has an integrated approach both to the questions of structuring similar deals and solving questions of attendant costs financing (advance payment, customs duties and etc.).
In September, 2004 Fitch Ratings, the leading international rating agency, has assigned the following ratings to Russias Credit Bank of Moscow (CBM): Long-term B- (B minus); Short-term B; Individual D; and Support 5. The Outlook is Stable.
The ratings will effect on the further development of the Banks activity on international capital and loan markets directed on the satisfaction of customers needs in the modern and competitive bank services.