Venezuela is to establish a joint development bank with Russia as part of a plan to set up a regionally focused aircraft leasing company.

The country's transport ministry has concluded an agreement to this effect with Russian lessor Ilyushin Finance and Evrofinance-Mosnarbank.

Ilyushin Finance says the proposed bank will back up a Venezuela-based company designed to handle leases of new Russian-built aircraft to customers in Latin America.

"We're working towards launching such an enterprise in the first quarter of 2011 with a charter capital of $100 million," he says.

Ilyushin Finance has drafted a business plan for the firm, in which it will have a 25% stake with the rest of the equity to be held by the joint development bank.

"Our major contribution will be in the form of tentative orders from Venezuela, Cuba, Bolivia, Nicaragua, Ecuador, Chile and Argentina for 28 Antonov An-148/158 regional jets valued at $700 million," says Ilyushin Finance.

Source: Flight International