UNEXIMBANK - MOSCOW CREDIT LINE SUBPROJECT

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The Moscow Credit Line Framework is a five-year credit line of US$ 135 million to be made available to a group of six Moscow-based banks, including Uneximbank, for on-lending to medium-term private sector construction and other investment projects in the Moscow city region. Uneximbank will receive a loan of US$ 20 million under the Framework. Project objectives: 1) Support of private sector construction and other enterprises in Moscow, thereby assisting the transition process, especially with regard to the construction industry; 2) indirect financing of projects that the EBRD cannot finance itself due to their size; 3) support for Moscow as Russia's leading economic centre; and 4) continued support of the financial sector and financial intermediation in Russia. The loan will support the growth, development and strengthening of the construction, property and other economic sectors, and the private sector in general by providing much-needed term funds for the development of private enterprises in Moscow. Uneximbank is the largest private bank operating in Russia. It has over 400 major blue chip corporate customers and has strong dealings with the government. The credit line will provide funding to Uneximbank to promote the increase of medium-term lending to private sector construction and other investment projects in the Moscow city region. US$ 20 million (ECU 16 million). This financial intermediary project has no direct impact on the environment. The participating banks will follow the EBRD's Environmental Procedures for Local Banks in relation to all sub-loans financed through the credit line. In implementing these procedures, the participating banks will assess potential environmental issues associated with sub-projects which, at a minimum, are required to comply with local/national health, safety and environmental regulations and standards. The participating banks will report annually to the EBRD on environmental issues related to the credit line. TC funds were obtained to fund a property adviser to assist the participating banks in analysing construction projects.