The Ministry of Finance submitted to the government a plan of action to support VEB

Moscow. December 29. The Finance Ministry has made proposals to the government for financial support and the fate of Vnesheconombank, told journalists the assistant to the head of Department Svetlana Nikitina.

“The proposal contain a detailed plan of activities in three areas: measures of state support, to increase financial stability and improve performance. In the plan there are proposals for additional capitalization necessary for the performance of all obligations of VEB to creditors. Includes measures that will help to maintain the liquidity. Have any suggestions on clearing the balance and improvement of the regulatory framework governing the activities of Vnesheconombank as a development institution,” said she.

Of the activities proposed to be undertaken in the first quarter, the whole plan will last until the end of 2016, said Nikitin.

The final decision for the government, she added. Details of their proposals, the Finance Ministry does not disclose.

While officially reported for only one measure to support VEB, which need more than 1 trillion rubles to pay off external debts. On Monday, the Finance Ministry published a draft decree of the government on prolongation for 5 years subordinated deposits of funds of national welfare Fund (NWF) placed with VEB, while reducing interest rates from LIBOR + 2,75/3,00% to 0.25% per annum and establishing a grace period for payment of interest for up to 3 years. This will allow the “web to receive additional income and increase it at the expense of their capital,” reads the explanatory note to the draft resolution.

The main source of problems of VEB loans under the so-called “special projects” that the Bank issued by resolution of the Supervisory Board and now no revenue. Among the proposed measures – the Corporation’s recapitalization through OFZs and transfer to the state of distressed assets of the Bank.

“This is about systematic support of VEB related to issues with liquidity, the fulfillment of all obligations to external and domestic creditors, the implementation of the projects in which VEB is responsible, and the financing of new projects, including funds from the national welfare Fund, worth about 300 billion rubles”, – told reporters the head of VEB Vladimir Dmitriev last week on the results of the Supervisory Board of the Corporation.