“Political” the recapitalization – five variants of salvation VEB

MOSCOW, November 16. The state during the week will be determined, how it will save the Bank needs which assistance is estimated at 1.5 trillion rubles, and payments on foreign debt in 2016 will be about 200 billion rubles.

Political decision to support the state Corporation has already been made, but the mechanism is still actively debated.

The authorities have already stated that the total amount required to the web, especially this year, will not be forthcoming. “(The amendment) 2015 are now considering, any 1.5 trillion rubles is not there, consider different options of support”, – told reporters the first Deputy head of the Ministry of Finance Tatyana Nesterenko.

The heavy burden of projects

The need for additional capitalization of the Bank occurred on the background of its high debt load and the specifics of the business model. VEB is the second year shows a loss. According to IFRS, loss of Vnesheconombank group in 2014 amounted to 250 billion rubles. In the first half of this year loss of the Corporation amounted to 73,491 billion.

The Bank’s assets for the first half of this year amounted to 3.85 trillion rubles. In the portfolio of VEB is a large number of so-called special projects, including the Olympic, which, according to the Minister of economic development of Russia Alexei Ulyukayev “inherently uneconomic and therefore require large dosoznanie provisions”.

Does not add stability to the web and “Transaero”. In September, the head of Vnesheconombank Vladimir Dmitriev in an interview said that the Bank through its subsidiary “VEB-Leasing” has provided substantial financial support to Transaero, and the volume of financial leasing in favour of the carrier is 55 billion roubles, cancellation of debt would mean direct loss “VEB Leasing”, respectively, and Vnesheconombank. And this direct loss may involve a breach of Covenant which may, in turn, can trigger the appearance of other problems for VEB.

The decision was made

Monday Nesterenko said that next year the web will arise the obligation to pay external debts, which in the ruble equivalent will be about 200 billion rubles. Earlier, another Deputy Finance Minister Alexey Moiseev said that the whole amount of debt of VEB in any scenario, will be repaid in accordance with the schedule.

“In any scenario, the entire volume of Vnesheconombank’s debt will be serviced and repaid in accordance with the schedule. So if someone has any concerns that there are risks in this part, then all will be settled beyond a doubt. It’s the responsibility of the Russian Federation”, – said Moiseev.

According to Nesterenko, “the political decision on support made.” Tuesday will be a meeting of the Minister of Finance with representatives of the Bank. And during the week at the level of first Deputy Prime Minister Igor Shuvalov, the support mechanism will be detailed, said the Russian presidential aide Andrei Belousov.

The exact amount of recapitalization is also yet to be determined, but, as stated by the speaker, the amount will be substantial, although less than previously voiced in the media 1.5 trillion rubles. The amount of capitalization, he said, again, will depend on the support mechanism.

While the web has not commented on the situation with its debt problems.

Assistance options

For four days, since the theme of EBV surfaced in the media, various government representatives were announced at least five variants of assistance. Moreover, Belousov did not rule out that they could still be combined and applied in various combinations.

The first option is the recapitalization through Federal loan bonds. However, it can be used to a limited extent or not involved at all, Belousov considers.

The other way sounded Nesterenko: the state may redeem the debt of the Bank.

Three more variants called the speaker. According to him, it is possible to transfer distressed assets to the Bank balance of the state or the establishment of a special Fund, which could attract funds from the market under the state guarantees. Do not rule out the sale of highly liquid assets of the Corporation, which include ADR “Gazprom”.

“Now we just think of what form is most acceptable from the point of view of macroeconomic stability to find for this essentially fiscal operations. Anyway, it will have to do,” said the speaker. “Look… what is the impact of a decision (will be) on a spending budget,” – said Nesterenko.