UPDATE: PM sees VEB capital at 450 bln rbl in 2017, no liquidity problems

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GORKI, Moscow Region, Dec 14 (PRIME) -- Russian state development bank Vnesheconombank (VEB) has no problems with liquidity, its capital will exceed 450 billion rubles at the end of 2017, Prime Minister Dmitry Medvedev said on Thursday during a meeting of the supervisory board of VEB.

“Despite the existing restrictions, including limited access to financial markets, the situation at the bank has generally stabilized. VEB has no serious problems with liquidity now. Its capital is forecasted to exceed 450 billion rubles as of the end of 2017,” he said.

VEB CEO Sergei Gorkov also said that the bank agreed with the Finance Ministry that the authority will place several hundred billions of rubles on the bank’s deposits.

“We’ve decided on the amount of deposits. We are not speaking about capital now, we are speaking about deposits amounting to several hundred billions of rubles. This deposit will allow us to solve some liquidity problems…They are not subordinate deposits, they are usual deposits, chargeable,” he said.

He added that he hopes that VEB will sign conditions of the deposit with the ministry until the end of 2017.

The money will not be provided by the National Wealth Fund, he said.

“The character of the deposits will be long-term, but the form of the deposits will be short-term because we can’t legally make them long-term, but their character still will be long-term,” he said.

(59.1446 rubles – U.S. $1)

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