VTB Bank to pass all loans of defense companies to 2 other banks

MOSCOW, Oct 30 (PRIME) -- Russia’s second largest bank VTB plans to transfer all loans of the defense companies, including the debt of railway equipment producer and tank maker Uralvagonzavod, to Promsvyazbank and Novikombank, VTB Bank CEO Andrei Kostin told reporters on Friday.

Promsvyazbank became the bank for operations with the state defense order and for large state contracts in 2019. The Finance Ministry expected then that other banks may transfer loans of defense companies totaling up to 1 trillion rubles to Promsvyazbank.

“We have made a principal decision that all loans will be transferred to Promsvyazbank. And Uralvagonzavod’s loans are not an exception, we have already passed the majority of them… And we are transferring them to Novikombank too… In the end, we expect that all loans of these companies will be transferred there,” Kostin said.

(78.8699 rubles – U.S. $1)

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