OTTAWA May 30, 2007 Export Development Canada (EDC) and JSC VTB Bank (VTB) of Russia today signed an agreement increasing an existing US 50 million line of credit established in December, 2004 to USD 150 million. The increase is a result of high usage of the original facility and ongoing demand. This line of credit will continue to finance Canadian exports of goods and services to Russia. "Russia presents rich opportunities for Canadian exporters and investors in many different industry sectors," said EDC President and Chief Executive Officer Eric Siegel, in Moscow as part of a program officially launching EDC's first permanent representation in Russia. "We are seeing significant growth in Canadian activity in Russia, and we are extremely pleased that the original line of credit with VTB has been almost fully utilized. The increase to USD 150 million reflects continuing growth in our business in Russia as well as the key role that VTB plays in the Russian economy."In 2006 EDC facilitated $750 million of business in Russia, a dramatic 50 per cent increase over 2005. Overall, Canadian exports grew by 54 per cent in 2006, and in the past five years, Russia has moved in ranking from 26th to 5th in importance for Canadian companies among all emerging markets. VTB's ability to assess the creditworthiness of Russian buyers makes it an ideal partner for EDC. In increasing its line of credit, EDC's funding will still be specifically directed in support of Canadian exporters, but VTB will make credit decisions on Russian buyers of Canadian products. VTB is one of Russia's top banks with a diversified lending portfolio and holds specific expertise in foreign trade financing. VTB is majority owned by the Russian government but has just had an extremely successful IPO. VTB is the preferred counterparty for many international financial institutions, export credit agencies and private commercial banks seeking to extend their services into the Russian market.The increase to the line of credit agreement signals the growing maturity of the relationship between VTB and EDC, and the need to provide more financing tools for Canadian companies active in Russia. In addition to raising the amount of the line of credit, the maximum repayment term has also been increased from seven to ten years, and financing can now be provided in Euros as well as U.S. dollars. EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and has been named one of Canada's Top 100 Employers for six consecutive years.VTB is a leading Russian universal banking group offering a wide range of banking services and products across Russia, certain Commonwealth of Independent States (CIS) countries and selected countries in Western Europe, Asia and Africa. VTB is focused on providing banking products and services to Russian and CIS clients through its domestic and foreign operations and to foreign clients doing business primarily related to, or in, Russia and the CIS through its foreign banking subsidiaries and representative offices.
-30-
Media Contacts:Phil Taylor Public Affairs, EDC (1-613) 598-2904 ptaylor@edc.ca
JSC VTB BankPR and Communications DepartmentTel.:+7(495)783-1717Fax: +7 (495)783-1895pr1@vtb.ru http://www.vtb.com/
