The Russian government is considering the creation of a state fund to buy up the assets of problem banks and companies, Mikhail Zadornov, the head of VTB24 bank, told reporters. "It would be appropriate to issue mandates to a special state fund or an already existing organization; the issue is being discussed by the government," he said, noting that the idea was to buy "good assets of problem-hit companies."
A bill has been submitted to the State Duma today to issue RUB 950 billion (approx. $36.54bn) in subordinated loans to Russian banks. The document requires amendments to the federal budget for 2008-2010. It also proposes an increase in defense spending. On October 7, President Dmitry Medvedev ordered changes to simplify debt recovery procedures for collateral-secured debts, as well as to simplify reorganization procedures for credit organizations. These amendments should be passed as soon as possible, he said. Another anti-crisis measure is the allocation of RUB 950 billion (approx. $36.54bn) in subordinated five-year loans to banks. Sberbank will receive up to RUB 500 billion (approx. $19.2bn), while RUB 200 billion (approx. $7.67bn) will go to VTB, RUB 25 billion (approx. $958.96m) to Russian Agricultural Bank, and up to RUB 225 billion (approx. $8.63bn) to other banks. |
