The Export-Import Bank of Korea (Kexim) has agreed to increase its credit line to Russia’s Bank Uralsib to a maximum total of US$150mn.
The credit line, which has a tenor of a maximum of two years, will fund imports from Korea to Russia.
This is a substantial increase from Kexim’s original credit line to Uralsib of US$50mn, which was established in June last year.
Denis Dodon, chief trade finance manager medium-term trade finance, international business department at Ursalsib, speaks to GTR: “We completely utilised the US$50mn line so we are happy to extend the maximum to US$150mn. The credit line will be used across many sectors. It could be used to finance Russian imports of machinery, services, even ferrous, from Korea.
“We will see if we have the available importers to fully utilise this new maximum amount of the credit line and once that has been established we will enter discussions with Kexim about possibly increasing the maximum available even further.”
Anton Zur, head of international business department at Uralsib, remarks: “The expansion of our mutual cooperation will contribute to increasing trade volumes between Russia and the Republic of Korea.
“Development of the economies of the two countries will allow us to extend more loans to our clients, purchasing Korean goods and services, as well as Korean companies working in Russia. I am sure that the signing of the new interbank loan agreement will not only improve partner relationships with Kexim, but will also increase our client base.”
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