Bank of Cyprus and Uniastrum Bank sign Memorandum of cooperation for SME Russia loans

Bank of Cyprus (BOC) and Russia's Uniastrum Bank signed a Memorandum of Cooperation with a view to promote a Small and Medium Enterprises (SMEs) lending programme in Russia.

A press release issued by BOC notes that the Memorandum was singed in the Kremlin, at the presence of Russian President Demetry Medvedev and Cyprus President Demetris Christofias, who is holding an official visit to Russia.

BOC has acquired 80% of Uniastrum's share capital. The Memorandum covers the promotion of a joint financial programme totaling 15 billion ruble (approximately 405 million euros) for the period of 2009-2011 for Russian SMEs.

According to the press release, BOC and Uniastum promoted this cooperation, recognizing the prospects and the importance of SMEs for the Russian economy, as well as the need for strengthening this sector, since the demand for financial facilities is satisfied by only 20-30%.

With this memorandum, BOC will grant to Uniastrum its long expertise in financial services. ''This expertise in combination with Uniastrum's knowledge of the local market and its capital will assist the expansion of its financial provisions towards the Russian SMEs,'' the release notes.