VTB-24 and Belgorod Regional Fund for SME Support Sign Cooperation Agreement

MOSCOW, August 23 /PRRussia/ — Vneshtorgbank-24 and the Belgorod Regional Fund for Small Business Support have signed an agreement to create a small business support system in the Belgorod Region. Under the agreement, VTB-24 will issue credits to entrepreneurs against the security of the Belgorod fund. A small business is reimbursed the cost of security with federal budget funds that are allocated to the region to develop the guarantee and security mechanism. The Belgorod Region has received 9.3 million roubles ($359,000/E270,000) for those purposes.

Under that scheme, the credit is issued to finance a company’s day-to-day operations, manufacturing and services projects, to acquire fixed assets and to boost the working capital. According to VTB-24 vice president Nadezhda Karisalova, agreements regarding the security mechanism have been signed with regional small business support agencies in Russia’s eleven regions. As of today, the volume of those deals is around 120m roubles ($4.5m/E3.5m), but by year’s end, the bank projects a sizable rise in the number and volume of such deals.

Source: Vneshtorgbank-24 press service