PRESS: Russian cbank to convert 180 bln rbl of VEB debt into loan
MOSCOW, Jan 28 (PRIME) -- The first stage of Russia’s Vnesheconombank (VEB) capital increase will encompass conversion of some of the bank’s debt to the central bank into a perpetual 180 billion ruble subordinated loan, business daily Kommersant reported Thursday, citing a source close to VEB.
On Wednesday, VEB was ordered to sell two affiliates, Globexbank and Sviaz-Bank, at a market price to raise 212.6 billion rubles to repay the debt to the central bank. The remaining part of the debt will be transformed into a perpetual subordinated loan of the central bank, included into the VEB capital calculation, VEB said then.
The source said that the subordinated loan sum can be revised. “However, due diligence of the banks is being done now, and there is no final valuation of their capital.”
The difference between the assets and liabilities of VEB, one Russia’s largest development institutes, stands at 550–600 billion rubles, Kommersant reported, citing earlier statements of rating agencies. The government is considering a wide range of steps to close the gap.
(78.9969 rubles – U.S. $1)
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