The deadline for deposits from VEB, which placed its funds increased from 15 years to 20 years. The interest rate on these deposits decreased to 0.25% per annum. The decision will increase the value of the net assets of Vnesheconombank, the Russian government says.
MOSCOW, 8 Jan. The government of the Russian Federation increased by five years the deadline for placing funds of the national welfare Fund (NWF) deposits in VEB, while reducing interest rates and establishing a grace period for payment of interest for up to three years. Relevant documents are available on the website of the Cabinet on Friday.
“The changes will increase to five years the time deposits placed earlier with Vnesheconombank in order to ensure the adequacy of its capital, while reducing interest rates and establishing a grace period for payment of interest for up to three years. This will allow Vnesheconombank to earn additional profit and increase the capital”, — stated in the explanatory statements to one document.
Signed documents increased from 15 years to 20 years the deadline for deposits from VEB, which placed its funds, the interest rate reduced to 0.25% per annum.
“The decision will increase the value of the net assets of Vnesheconombank from 3.0 to 6.6 billion USD, which exceeds the level prescribed in the Covenant”, — it is reported on the website of the Cabinet.
The government also approved the rules of placing of means of the Federal budget on deposits in Vnesheconombank.
According to the Ministry of Finance, on December 1, on deposits of Vnesheconombank NWF funds placed at 195 billion and 6.2 billion dollars. Of these, 5.9 billion dollars — subordinated deposits, which issued on recapitalization of Vnesheconombank. Term of return of funds is 2029, and rates of LIBOR + 2,75% and +3%.
Discussion about measures of improvement of VEB, which includes about 20 companies and banks, is in the government for several months. The President of Russia Vladimir Putin in December in his address to the Parliament stated the need to conduct a “clearing” of many development institutions since they became a “dumping ground for bad debts”. Form of support of the state Corporation while is developed, but the authorities have repeatedly stressed that all its obligations are fulfilled.