High Point Enterprise Newspaper Archives Jun 23 1974, Page 87

Low-resolution version. To view a high quality image

Start Free Trial
High Point Enterprise (Newspaper) - June 23, 1974, High Point, North Carolina High Point Enterprise sunday june 23. 1174 . Branch Banks in Moscow promote Trade Moscow a three leading United states Banks have offices in Moscow but base Manhattan can t Cash your Check the Bank of America can t accept your Deposit and Citibank can t help with your second mortgage. They Are not in the soviet Union to promote Christmas club accounts. They Are after the big Money that oils the wheels of soviet Trade the nine digit credits that allow Russia to buy goods and technology made in a. These Bankers Are betting on a ground floor advantage from steadily growing Commerce Between the United states and the soviet Union. Alfred Wentworth the 54-Ypar-old Chase senior vice president was the first to set up shop a i arrived Here april fool s Day 1973.�?T he said. With Bank chairman David Rockefeller Wentworth presided Over the Bank s formal opening May la. 1973 for Wentworth. Chases objectives Are threefold to develop a loan help Chase s customers who want to do business with the russians and to help the soviets promote their exports. Before opening the Moscow office. Chase loaned the soviets $86 45 million to finance purchases of . Equipment for the Kama River truck foundry. The loan stirred something of a controversy in the . Business Community because of the terms involved some businessmen said it looked like Chase was trying to buy favourable treatment from the russians. Wentworth won t disclose the exact interest rate but sources in a position to know say it was loaned at a fixed rate of 7 per cent Over a 10-year period All of the $86 45 million was Chase s. The prime lending rate in the United states a the rate Banks charge their biggest and Best customers and each other a has since leaped to More Titan la per cent. And because this is what Chase now has to pay for Money some . Businessmen wonder whether Chase will be Able to break even on the loan. Quot it was a rate that was satisfactory at the time Quot Wentworth says. After a pause he affirms. Quot the loan is still satisfactory to us at this second Kama foundry loan of $67 5 million followed with Chase acting As a broker organizing a five Bank consortium and taking a fee. No Chase Money was loaned and Chase recently completed a $36milllon credit to finance an International Trade Center in Moscow. Wentworth said Chase Quot will be participating Quot in the Trade Center loan. The terms of the Deal were not made Public. A Chase will continue arranging Loans Quot Wentworth said but Chase like All other . Banks has to operate under the Legal lending limit statute which specifies that the indebtedness of no one customer can exceed to per cent of a Bank s total shareholders equities less reserves. The comptroller of the currency has ruled that the soviet Union is a single customer. Wentworth estimates that Chase s Legal lending limit is Quot about $150 the maximum of Chase Money that can be loaned to the soviets. The limits for the Bank of America and Citibank Are somewhat larger. Alex s. Yankovich 34-year old Bank of America vice president who arrived to open his firm s office last sept 20. Puts customer service at the of of the Bank of America s priority list though Yankovich mentions Loans in second place a Quot of it s just a matter of loading up on credits we could do it from san Francisco a the Bank of America extended a $68-million credit with six other Banks in 1972 for soviet purchases of equipment from the Caterpillar tractor company and recently signed a 1180-million loan to finance construction of a chemical fertilizer Complex near the City of Kuy Bashev the Kuy Bashev loan was made by a of Bank consortium which the Bank of America headed and Yankovich said Quot it is the first time the soviets accepted a floating Rater such a Large piece of business Over the Long term Quot this Means in contrast to the first Kama loan by Chase that the interest the soviets pay will go up and Down according to the . Prime rate. The loan is for 11 years and repayment starts after five years the Bank makes its Money from the a percentage on top of the prime rate plus a commitment fee. Usually a half percent paid on that part of the loan which has t been drawn by the Borrower. Yankovich says Banks can make Money lending to the Quot but it s got to be the right project at the right Price Quot Victor Brunst. 34. The Only one of the three directors whose russian is fluent represents first National City Bank of new York familiarly known As Citibank Brunst says Citibank a role Quot is basically to help the customer who is dealing with the soviet trading organizations and Hanks. That obviously includes financing needs and involves As much expertise As possible on the soviet system and the establish Mem of Contact with the foreign Trade Hank and the trading organizations the Bank representative Quot should serve As an intermediary for both sides we have had inquiries from american clients and we Numa f. Rud Long a. 44 Kyj. A a m. Imi Rcpt communication Nan hmm i in to in wikis c Massis mat far i. Ngwira secretory Holton Hodgin furniture store s end of month just arrived new shipment Dinette suites a 3 or 7 pc. Sets a heavy Yontl construction a Formica lops a Choice of Oak knotty Pine Walnut or Maple. Save s20 to s30 per suite. Special a Quot is olints Bassett bedroom suites Holton ii Odin furniture store Jamestown . Phone 454-1429 Hope to he Able to develop this Side too this will be the Day when the representative from a soviet trading organization will walk in Here and say a we re interested in buying such and such. Can you help us a Quot Brunst. Who arrived to stay last new years Day. Said Citibank had not made any project Loans yet. Quot we have certain standards we Are looking for in these Loans and they Haven t been met. The interest rate is the Crux of the matter Quot Quot we Are trying to do financing with the soviet Union on the same basis As in the rest of the world and we done to want to give the soviets preferential treatment Quot Brunst said the most cautious of the three. Brunst considers Quot its going to take time to see whether this thing really flies or if the future of Hank Loans to the soviets is limited by . Regulations the Quality of service the Hanks can give their customers is circumscribed by the Peculiar complexities of the soviet bureaucracy. To offer the kind of coun seling their customers really need the Hanks would have to be plugged into soviet ministries and the planning apparatus they Are not. And unless general Secretary Leonid Brezhnev commands it and enforces it they will not he. The Best the Hanks can do is to Deal at Levels several times removed from the end user As things Are Yankovich observed. Quot it s difficult to get people to move Quot he said this was especially True where a Deal involves crossing ministerial lines the soviet bureaucracy lacks lateral communication and decisions have to go to the top of the command table Brunst has found Quot very few people who can make a he said the soviets Are Quot very eager to develop Trade and this sometimes has t filtered Down to the lower Wentworth sees difficulties ahead with soviet refusal to disclose what cold and hard currency reserves there Are to Back the Loans Bankers say they will need this for mation As soviet indebtedness grows. But these data Are covered by soviet state secrets acts. Each of the Bankers is aware that expanding Trade volume to a Large extent functions on the solidity of political detente and they All keep a Damp forefinger aloft to see which Way the wind is blowing. Quot should something happen to this new relationship it would be very Tough sledding As far As business development is concerned Quot Wentworth said. Monday tuesday it a 4 by 2 Days 2 96 Short sleeved polyester Cotton shift. Solid or fancies. Men be. 2 Days Only Breezy shorts sets our regular 4.96-5.96 Coupon eight injector Blades Nee i or with Coupon 66 Platinum Pius coed Only june 4 and june 2$. A Quot a Coupon ii 2 Days Only made for summer go together in an array of comfortable Good looking styles. Shorts in 13&Quot or 16&Quot length. Easy care fabrics in solids. Jacquard prints. Save at k Mart a a a Coupon charge it Mariner jeans for boys. Rag. 4.tt� 4.17 2 Days indigo Cotton Denim flares with 4 Patch pockets. Belt loops. Boys regular slim and husky sizes save. 8�?Tx20�?� steel Wall Pool Reg 17 by round 8 diameter steel Wall Pool slip Resimont Vinyl liner empties Thiu Bottom Drogt a. 14.88 sandals on a Cork platform spacial Purchase no women a Sites charge it a summer favorite. White Vinyl Cross band tops a natural Cork Bottom on rubber sole. Charge it. A a aviator sunglasses a <97 333 to.,. Change color with the brightness of the Day. Driving sunglasses a a ct44 6 97 o oar. Polarized Gold Metal with Grey lenses charge it. Coupon a raid insect killer Reg i 07 with Coupon 83 to 12 of net it coed Only june 24 and june 25 25s2eisisse2s 2 my ewe1 Model 4000 Fisk sealed beam lights Reg. 1.57 99 for dual headlight 1.64,96014.1.09 King size air Cushion Reg. 2 37 i 43 porous Cushion for summer. 60�?� round splashed Pool Reg 4 78 2 97 j tots Delight Blue a polyethylene decorated with fish design. To Quot deep. All purpose tin snips 7 miss Metal Wiz tin snips with Vinyl coated grip. Cut right or left handed. Save High Point pc Art 2300 North main St. Hot at Eastchester

Search all High Point, North Carolina newspaper archives

Explore other publications from High Point, North Carolina

All newspaper archives for June 23, 1974