MOSCOW, April 5 (RIA Novosti) - Russian state-run foreign trade bank Venshtorgbank signed a strategic partnership agreement Wednesday with the country's largest carmaker, AvtoVAZ.
Under the agreement, VTB, Russia's largest bank by assets, will service AvtoVAZ's financial flows.
"VTB will consider increasing AvtoVAZ's credit limit from the current 5 billion rubles [roughly $182 million] to the amount sufficient to revive the plant," said bank board deputy chairman Igor Zavyalov.
He said cooperation included possible syndicated loans and the acquisition of banks in which the carmaker holds stakes.
AvtoVAZ Chairman Vladimir Artyakov said construction of a new plant was being planned and new car models were to be approved.
In 2005, AvtoVAZ increased production by 0.5% on 2004, and raised domestic sales by 3.7% to 648,000.
