Germany’s DZ Bank has loaned Russian development bank Vnesheconombank (VEB) €42mn to finance a technological park in Chechnya.

The facility has a tenor of 10 years and is insured by Euler Hermes. It will be used to purchase 85% of the German equipment used in the park and up to 100% of its insurance premium.

DZ has also provided VEB with a facility of €7mn for commercial purposes. This finance has a tenor of seven years.

The Kazbek Innovation Construction Technological Park will be the first of its kind in the troubled Chechen region of Russia, and will be implemented by ZAO.