Coal & Forestry Guarantee Facility

closed

The Coal and Forestry Sector Guarantee Facility Project, will help Russia finance the fixed, and working capital assets needed to restore production, exports, and employment in those sectors. By authorizing the Federal Center of Project Finance (FCPF) to issue Guarantee Contracts, the government would not interfere with private transactions, problems arising from unwarranted government interference will be resolved, and, if government interference does occur, compensation will be paid . Through the Guarantee Agreement, the Bank will back-stop the FCPF's claim payment obligations, and via the Indemnity Agreement, Russia would reimburse the Bank for payments made under the guarantee, an/or liabilities incurred under the Guarantee. The FCPF, as implementing agency, will process applications in compliance with the eligibility criteria, i.e., for either forestry, or coal sector, transactions should: serve productive purposes; credit maturity should not exceed ten years; value of credit shall not be less than U$S 1 million, nor exceed U$S 10 million; government ownership must not exceed twenty five percent; and, transactions shall not involve covered goods intended for military purposes, neither for luxury consumption, nor environmentally hazardous goods. Guarantee contracts will comply with environmental laws, include covered risks, and specify that commercial privileges, or tax advantages will not be granted.