News

27.12.2005

Perm Motors and Saving Bank expand cooperation

On December 27, 2005 Perm Motors Group and Western Ural Bank of the Russian Saving Bank signed an Investment Agreement. The document was signed by General Director of Perm Motors Group Alexander Inozemtsev and Chairman of the Bank Vladimir Verkholantsev.

The objective of the Agreement is further development of the mutually beneficial cooperation between the leading engine manufacturer of Russia and the largest bank of Western Ural. The agreement outlines the intentions of the parties in cooperation in the area of short-term crediting and financing of the Group investment program for 2005...2012, as well as major directions and methods of cooperation.

The total volume of loans in the specified period for specific projects of Perm Motors Group may be as high as 9 Billion rubles, 700 M of which are planned to be spent in 2007 already.

"Bank resources should work in favor of the regional economics. And the economics of Perm region, its progress, are mainly dependant on such companies as Perm Motors Group", said Vladimir Verkholantsev during signing.

According to Alexander Inozemtsev, signing of the agreement became one more successive step in development of cooperation between Perm Motors and Bank. "It is the first time when the bank considers us a holding but not separate companies" - told Marina Portnaya, Deputy General Director - Financial Director of Perm Motors Group.

The relations between Western Ural Bank of the Russian Saving Bank (former Perm bank) and holding companies last for more than 7 years. Today's event - signing of Investment agreement - is an important step in further development of the interests of both partners and also development of credit and finance infrastructure and machine building of Prykamie.

During the last 5 years the policy of Western Ural Bank of the Russian Saving Bank is oriented at development of operations with crediting the real sector of economics. The Bank participates in implementation of large-scale investment projects of the region. As of today, the total volume of Bank credit portfolio is about 70 Billion rubles.

Perm Motors Group is interested in using a state-of-the-art high-tech equipment in the production process, therefore it is planning to re-equip its main production lines. In its turn, the Bank is interested in financing the holding investment and in providing to Perm Motors the whole package of the Saving Bank Services. Implementation of the agreement will allow Perm Motors to increase production profitability and product competitiveness.