On the International Bank for Reconstruction and Development issuing a loan to OAO Svyaz, Republic of Komi

 During the last week of November the International Bank for Reconstruction and Development (IBRD) examined an application to grant business development financing under the Company Support Project and approved a USD3.5 mn loan to OAO Svyaz, Republic of Komi. 

The International Bank for Reconstruction and Development is one of the world’s most venerable financial institutions.  The Bank makes special-purpose loans available to foreign companies, including Russian companies.

 It is a great honor to receive such a loan and this points to the stability and successful business operations of the recipient company.  The loan is not secured by the state.  The only guarantee attached to it is confidence in the beneficiary itself.  This is a case in point where a company’s business reputation can make or break the deal.

 Receiving this loan from the International Bank for Reconstruction and Development is not only a sign of stability and good performance by the company itself, but indeed the Republic of Komi as a whole.  It is indicative of confidence in its huge economic potential.  The fact that telecom business is looking up in the Republic is a clear index that the whole region looks promising in terms of investment opportunities as a safe haven for long-term investments.  The funding received will be directed towards future development of the Republic’s telecom industry.  The Republic’s business plan specifically calls for construction of a number of new telephones exchange facilities.