Official: Fin min opposes extension of bank cap raise via OFZs

MOSCOW, Jun 25 (PRIME) -- The Russian Finance Ministry sees no need in prolonging a banking capital increase through state OFZ bonds after 2025 albeit banks are returning the money slowly, Deputy Minister Alexei Moiseyev told PRIME in an interview released on Monday.

“So far only Alfa-Bank has returned the bonds. I have not heard proposals to return the subordinated loans from none of the other banks yet, unfortunately. Sure, we would like banks to return them to us before maturity, but have not set this as a goal. Though the program was created to stimulate banks to return them fast,” Moiseyev said.

He said that a higher burden on capitals of banks by new regulatory measures and a lack of sources of borrowing make it impossible for banks to return the bonds.

The government placed about 800 billion rubles of OFZ bonds with banks in 2015 in order to help them out during the financial crisis.

Moiseyev said that Russian banks have no serious deficit of capital and do not require state injections similar to the 2015 program.

(63.2396 rubles – U.S. $1)

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