Commerzbank International S.A. disbursed a gold bullion loan to Promsvyazbank, which is on a list of Russia's top 30 banks published by the Central Bank, in the summer of 2005. Promsvyazbank has since received 1 metric ton of gold equivalent of $20 million, the bank's press office said.
Promsvyazbank, which provides all types of services on the Russian precious metal market, will draw down the loan to finance Russian gold mining enterprises and help them replenish their circulating assets this and next year, the press office said.
Promsvyazbank, with its assets of 130.8 billion rubles (about $4.8 billion) and a shareholder equity of 13.8 billion rubles ($511 million), credits gold mining enterprises in Russia's Far East and Siberia.
This year, the bank, which extends loans in gold bullion, exports gold directly and under contracts of agency, performs domestic and international trading transactions and maintains unallocated bullion accounts, has bought about 5,000 kg (176,000 ounces) of gold from miners. The bank will use a part of this gold to repay its gold bullion loans.
