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. Last Updated: 07/27/2016

Inkombank Gets Credit

The European Bank for Reconstruction and Development has approved a $3 million credit line to Inkombank aimed at boosting the growth of private business in Russia's regions, Alexei Kuznetsov, Inkombank's first vice president, told a press conference Monday.

The EBRD will provide a three-year loan to Inkombank with the possibility of granting further, larger loans.

The agreement is part of a $300 million scheme by the European Bank to finance domestic small-scale companies by making loans of up to $75,000 through a number of Russian partner banks.

Stolichny Savings Bank already has received funds under the program, in which AvtoVAZbank, Mosbiznessbank, St. Petersburg Bank, Promstroibank of St. Petersburg and Uralpromstroibank also are participating.

Elizabeth Wallace, an EBRD representative in Moscow, said Nizhny Novgorod would be the first region to receive the money under the agreement.

Wallace said the interest rates would be lower than those currently offered by Russian banks and would allow Inkombank to make a profit on the repayments.

The loan will provide financial support to 600 small-business projects, mostly in the Astrakhan, Nizhny Novgorod and Ulyanovsk regions, which demonstrate substantial potential for growth of private business, Kuznetsov said.