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About The Portal To Russia
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Email Dr. Palms
Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc.
Investment Bankers. Washington, United States of America.
The World Bank is accrediting a core of 25-35 Russian private banks
for collaboration with leading international commercial banks. Russian
Banks which have a minimum of $6.25 million dollars in capital and have
undergone an International Accounting Standards (IAS) long form audit are
eligible. Thirteen Russian banks have been accredited since May 1995. The
focus of the collaboration arrangements is detailed in file "flbankprg.fl"
which has been available on Palms Portal to Russia Web pages at http://www.peterpalms.com
since 1995. European banks such as ABN AMRO Bank and ING Bank have been
more active than American banks. Bank of America is currently the sole
American participant. ABN-AMRO jointly with IFC is also providing partial
confirmation of Russian Bank letters of credit. $389 million in financing
has been made available for such "confirmation" financing by
the World bank and the European Bank for Reconstruction & Development.
World Bank contracts provide immediate revenue to Western banks and
cover the cost of developing a team of experts in Russian banking and something
akin to a branch bank network in Russia. In addition more than $200 million
will be available for system automation and technology upgrades
Most of the international money committed to industrial economic reconstruction
of Russia continues to come from public government money of Western nations
while the commercial private sector of these economies limits their commitment
to the management of this public money. The message remains that private
industry is willing to provide technical expertise but that the likelihood
of loss of capital remains above levels that permits commitments of private
capital.
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