The Finance Ministry is about to switch from the current fixed rate on subordinated loans to floating interest rates. Russia's Finance Minister Alexei Kudrin told the State Duma today that the ministry was hatching plans for a floating rate pegged on the current market situation.
The current rate on subordinated loans is 7 percent per annum. According to the Finance Minister, the government has allotted RUB 450bn (approx. USD 16.41bn) to Vnesheconombank from the National Welfare Fund to be further redistributed as subordinated loans, while some RUB 200bn (approx. USD 7.29bn) of the total has already been extended to VTB, and RUB 25bn (approx. USD 911.41m) more to the Russian Agricultural Bank. |
