Eximbank of Russia: results of 2020 and plans for the future
In January 2021, Eximbank of Russia celebrated its 27th anniversary. Chairman of the Management Board Azer Talibov spoke about key events for the Bank in 2020.
“First of all, the Bank was rated at AA (RU) by ACRA rating agency l, with a stable outlook. In the financial market, counterparty’s rating is of critical importance, as it has a direct impact on the final cost of credit resources for clients,” Azer Talibov.
One of the priority tasks that Eximbank of Russia was solving last year was the development of infrastructure for expanding the use of national currencies in cross-border transactions.
“As a result, we significantly expanded the geography of such transactions. At the same time, the number of ruble accounts of non-residents opened with Eximbank of Russia increased. Throughout the year, we intensively developed a network of Nostro accounts in national currencies. Last year, we, for example, opened direct accounts in Azerbaijani manat, Uzbek sum, dirham. The account in Uzbek sum became the first for Russian banks. This made it possible for exporters to make settlements in these currencies with their counterparties, which significantly reduced transaction costs for participants in foreign economic activity, currency risks, and potential sanctions risks,” Azer Talibov.
Today, Eximbank has direct Nostro accounts in 18 countries of the world. According to Azer Talibov, the plans for 2021 are to expand the geography, in particular, to approach the markets of Mongolia, Israel, Serbia, Croatia.
“We have a strategic goal to support the NRE into the Russian ruble to the maximum degree. The current financial trends and the signals that we receive from our foreign partners show that this is the only correct way that will ensure stable settlements and, therefore, stable activities for Russian exporters,” the Chairman of the Management Board of the Bank summed up.
Talibov noted that last year was not easy in terms of adaptation to new conditions. Eximbank of Russia analyzed the products that could be most in-demand in the current situation, and also moved to the online format, providing services in digital form.
“In general, we managed to meet the needs of our clients and increase the size of the loan portfolio. Eximbank offers a wide product line. Credits to foreign buyers and credits to the foreign buyers’ banks were in great demand. Also, Eximbank supported export deliveries by providing various types of guarantees (advance payment refund, contract fulfillment, fulfillment of guarantee obligations in favor of tax authorities),” Azer Talibov.
In terms of the volume of supported exporting activities, the leading sectors include engineering, metallurgy, and chemical industries (30% each). The volume of export support provided with Eximbank’s loan and guarantee facilities amounted to more than $ 1.8 B.
“On the whole, the high demand for Eximbank’s products is obvious. The specialization in export operations is our striking advantage. It includes competencies, relevant skills, and products that allow us to provide high-quality financial support to Russian exporters,” Azer Talibov outlined.
Eximbank of Russia JSC is part of the Russian Export Center Group, which also includes REC JSC and EXIAR JSC. Russian Export Center is part of the VEB.RF Group.