Aval Bank plans to attract about USD 200 million in the current year by means of syndicated loans and direct credit lines of international financial institutions, reported Chairman of the Bank Board Oleksandr DERKACH in his interview to journalists.

According to O. DERKACH, for today the Bank has already signed two memorandums with Raiffeisenbank and Deutsche Bank for attraction of syndicated credits for the total sum about USD 50 million.

Aval Bank plans to receive these funds in May-June this year after announcement of the results of an international Bank audit.

As O. DERKACH noted, the Bank does not plan to issue corporate eurobonds this year, as the cost of funds attraction by this instrument remains rather high — 11-13%. At the same time, in his words, Aval Bank attracted the first syndicated loan in November 2003 at 7.01%, and it plans to attract the second one at the rate less than 7%.

As O. DERKACH stressed, Aval Bank considers foreign loans equally with attracted funds of individuals as the main instruments for replenishment of its own resource base.

As it has been reported before, in December 2003, Aval Bank attracted a syndicated credit of foreign banks initiated by Standard Bank London Limited, for the sum of USD 14.5 million.

The effective rate with account of all commission fees for arrangement of the credit does not exceed 7% per annum. The funds are given to the Bank for a year with the right of prolongation the term for a half a year more with the aim of crediting trade projects on foreign trade contracts.