Germany’s KfW Entwiklungsbank and Russia’s VEB have signed a €100mn (US$130mn) agreement to improve Russia’s small and medium-sized enterprise (SME) sector.
The agreement will be implemented by KfW and the Russian Bank for Development (RBD), a full affiliate of VEB.
RBD will on-lend the funding to smaller banks to increase financing to Russian SMEs to modernise practices.
Lutz-Christian Funke, director of KfW Bankengruppe, says: “For KfW, signing this loan agreement is a cornerstone on which to extend our promotional programme structures in the Russian Federation, and a further milestone in our close cooperation with our partner, VEB.”
KfW have also revealed that evaluations of its existing SME programmes in Russia have shown that up to 60% of all goods and services financed benefit the German economy either directly or indirectly.
Last Updated July 19, 2010
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