MOSCOW, December 21. Financing of Vnesheconombank (VEB) at the expense of the national welfare Fund (NWF) and the Bank of Russia will be prolonged, wrote on Monday newspaper “Vedomosti” referring to Federal officials.
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According to the publication, in addition very likely to lower rates on deposits of NWF. The difference in rates should provide an additional paper profit, which will be reckoned in the capital of the Bank. How much is reduced rate, the newspaper’s sources don’t specify.
The fate of the Corporation could decide as early as this week, the newspaper added. It will be discussed at the Supervisory Council meeting (planned for 22 December), said earlier the assistant to the President Andrey Belousov. While the agenda this item does not appear. The Chairman of Vnesheconombank Vladimir Dmitriev commented on the deposits of the Central Bank: “We are negotiating with the Central Bank on the fate of these deposits and with his hand feel the support”. Representatives of the Ministry of Finance and the Central Bank declined to comment. The decision on prolongation is supported by all, even the Finance Ministry, affirm the interlocutors of “Vedomosti”, the other options are even worse.
Money from the national welfare Fund, VEB started to get out of the crisis in 2008, and on December 1, according to the Finance Ministry, the debt to the Fund amounted to $ 195 billion and $6.2 billion, they accounted For 14.3% of all of the obligations of the Vnesheconombank, is indicated in the Fitch report. The timing of the different deposits: one no-target by 50 billion rubles to pay off already in the summer of 2016, crisis deposits – in 2019-2020, and $5.9 billion of subordinated deposits, which issued on recapitalization of Vnesheconombank, – in 2029. interest Rates on foreign currency deposits – LIBOR + 2,75% and +3%, almost all ruble – 6,25%, only one – of 7.25%.
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The Central Bank posted on the web, according to statements of state Bank for the first half, 277,3 billion rubles for a period up to a year, 85 billion rubles for a period of over one year. The speech, according to officials, is to extend financing for the rehabilitation of banks: in 2008, VEB had received from the Central Bank of 212,6 billion rubles for the salvation of Svyazbank and “GLOBEKS”, in 2014, the Deposit was converted into seven-year bonds, at the same time, the web has reduced rate from 4% to 2%.
Lengthening the term on deposits while reducing interest rates really can support the Bank’s capital, affirms S&P analyst Victor Nikolskiy. According to IFRS principles when raising funds at a rate below market the difference is accounted for as income. In the case of EBV, it will be very significant. Profit will increase even more, if will be extended and the term of the Deposit. Thus, the Ministry of Finance one accounting operation will significantly increase the capital of VEB, said Nicholas. A similar effect can be from extension of bonds from the Central Bank, explains one of the officials.
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