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PRESS: VEB abandons idea to sell Globexbank, Sviaz-Bank

MOSCOW, Mar 22 (PRIME) -- Russian state development bank Vnesheconombank (VEB) has abandoned the idea of sell subsidiary banks Globexbank and Sviaz-Bank after their merger because the large amount of bad and non-core assets will prevent the sale of the merged bank, Kommersant business daily reported on Wednesday citing sources.

The merger was approved last week after several failed attempts to sell the banks. УVEBТs strategy will change, the two banks will be merged under Sviaz-BankТs license and transferred to the category Сkeep in the groupТ until the end of the year,Ф one of the sources told Kommersant.

An investor who was closest to buying Globexbank and Sviaz-Bank was Artyom Avetysian, who wanted to acquire the banks through Bank Orient Express for 33 billion rubles. In mid-2017, the deal was even approved by VEBТs credit committee. Soon after that, Bank Jugra lost its license Globexbank issued 20 billion rubles of loans to companies of JugraТs owner Alexei Khotin, the business daily reported.

In 2016Ц2017, assets of Globexbank shrank about 60% and assets of Sviaz-Bank lost 27%. The central bank estimated the amount of GlobexbankТs bad assets at 64.4 billion rubles, or half of the assets.

But a VEB spokesperson said that the development bank still plans to sell the banks as management of commercial banks is not its core activity. The spokesperson also called the merger only a possibility.

Kommersant also said that there is a negative point in the merger, as VEB has a serious debt to the central bank for the bailout Globexbank and Sviaz-Bank. Last year the central bank and VEB agreed to convert the loan into a perpetual subordinated loan at preferential terms, but only if VEB sells the banks at the market. It is unclear whether the central bank would agree with the new strategy.

(57.4954 rubles Ц U.S. $1)

End

22.03.2018 09:15
 
 
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