Vnesheconombank Chairman Vladimir Dmitriev’s Briefing on the Results of Vnesheconombank’s Supervisory Board Meeting
HOST: Now Vnesheconombank Chairman Vladimir Dmitriev’s briefing is starting at the House of Government. Our channel is telecasting the briefing live.
Vladimir DMITRIEV, Vnesheconombank Chairman: At our Supervisory Board meeting we discussed an issue of developing Vnesheconombank’s subsidiary banks and above all GLOBEX and
As far as the Russian Development Bank is concerned, it remains to be a key financial instrument for making government money available to small and
The second issue was associated with the fact that Vnesheconombank both in its capacity as a development institution and as an instrument for taking crisis management measures became an owner of both bad and solid industrial assets and shares and for the most part, it’s not typical for a bank of development to manage them. So, our idea is that VEB should set up a sort of specialized investment institution to which VEB could transfer these assets for management or into ownership for them to be capitalized, professionally managed or sold on the market in order to reorganize commercial banks on a
We also discussed a number of issues relating to refinancing Russian companies’ foreign debts. By the way, all the companies that were supported by Vnesheconombank with the Central Bank’s funds got their credits rolled over. A decision to roll over the credits was taken by Vnesheconombank’s Supervisory Board at the beginning of this June. And the main terms of the rollover are in line the Supervisory Board’s decisions, that is, they are
As far as Vnesheconombank’s core activities as a development institution are concerned we discussed the project aimed at building a
We also discussed an issue of structuring a transaction in a project in the Olympic construction, this is a
HOST: And now questions, please.
-Good afternoon, Vladimir Alexandrovich, Maxim Tovkailo, the newspaper Vedomosti. Information agencies have just reported that Gazpromneft was refused to get its credit rolled over. All other companies were allowed to get their credits rolled over, here I mean Sitronics, Altimo, EVRAZ, RUSAL, PIK. Can you confirm if this is so or not?
Vladimir DMITRIEV: I don’t have this sort of information. I can confirm that Gazpromneft got its credit rolled over.
-Is that really true?
Vladimir DMITRIEV: Yes, it is. And I can also confirm the fact that the terms and conditions as well as the terms and conditions of original agreements differ because in assessing risks Vnesheconombank takes into account objective market assessments with regard to a specific borrower. But I confirm that all the borrowers that requested us to get their credits rolled over received a
Did I get you right that additional terms and conditions are not related to interest rates alone, did you impose any additional terms and conditions?
Vladimir DMITRIEV: I haven’t said anything about it.
-Are there any additional terms and conditions for some companies besides increased interest rates?
Vladimir DMITRIEV: We haven’t changed basic parameters which were agreed upon and specified in the last year’s agreements.
-And now my final question. Not all companies that obtained your credits for refinancing their debts submitted applications for getting their credits rolled over. VEB has never made public the total number of companies that received the Bank’s credits for refinancing their debts. Can you tell us now how many companies received your credits?
Vladimir DMITRIEV: To my mind, this information is in the public domain. Except for Rosneft that repaid the credit all other companies are included in the said list. If you know something different, please let me know.
-Thank you very much
-Maria Knayzeva, RIA Novosti, good afternoon. May I ask three questions? Can you name companies for which interest rates on rolled over credits were raised and to what extent?
Vladimir DMITRIEV: No, I can’t
-The second question deals with VEB’s capital. Can you tell us what assets, both bank and
Vladimir DMIOTRIEV: You know that under the Supervisory Board’s decision a new company,
-I wonder if
Vladimir DMITRIEV: No, we haven’t got such plans. I’d like to stress it once more that the two banks have entered a stage of sustainable and financially sound development, their customer base and loan portfolio are on the rise. They are operating on a
-And now my last question. You’ve just said that VEB will finance the construction of a shipyard. How much money is VEB going to invest?
Vladimir DMITRIEV: The total amount of funds is about 38 billion rubles. The project is expected to be financed by Vnesheconombank, the Investment Fund and the project’s initiators. The project’s initiators are ready to invest twenty percent of this amount.
-And the remaining eighty percent will be invested by the Investment Fund and VEB?
Vladimir DMITRKIEV: Yes, that’s right.
-And what’s VEB’s participation amount?
Vladimir DMITRIEV: It’s about 60 percent.
-Newspaper Gazeta, Andrei Birykov. Vladimir Alexandrovich, have you discussed an issue of AvtoVAZ? Is VEB going to provide financial assistance to AvtoVAZ? And if it is, what’s the amount of this assistance?
Vladimir DMITRIEV: We haven’t discussed an issue of AvtoVAZ today. But VEB is the creditor of AvtoVAZ and at the same time our subsidiary banks just a year ago were among the first ones that provided emergency support to AvtoVAZ. Here I mean GLOBEX and NTB.
-Are you discussing a issue concerning VEB’s possible purchase of bonds worth 40 billion rubles?
Vladimir DMITRIEV: Yes, we are.
-Another question. Today the Prime Minister made public a figure of 11 billion rubles. This is the total amount of credits that were extended. He also said that borrowers were repaying these credits properly. Can you tell us how much money out of the said 11 billion rubles has been returned to VEB?
Vladimir DMITRIEV: Whereas the credits were extended a year ago and they were serviced properly the most part of credits.
-The most part — is this more than a half?
Vladimir DMITRIEV: I can’t give this figure now.
Vladimir DMITRIEV: It’s not a matter of repayment; it’s a matter of servicing. Credits are repaid at the end of credit period. And they are being serviced properly. If they had been repaid it would make no sense to talk about rolling them over.
HOST: Any more questions? Thank you very much.
Vladimir DMITRIEV: Thank you.
On Suspending Accepting Applications for Obtaining Subordinated Loans
Subject to Federal Law dated October 13, 2008 № 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation” State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ is responsible for extending subordinated loans to Russian lending institutions.
The total amount of such loans was determined by Federal Law dated July 17, 2008 № 168-FZ and is 410 billion rubles.
Vnesheconombank’s Supervisory Board made decisions on extending subordinated loans to 17 banks for a total amount of 391.8 billion rubles. At present, Vnesheconombank is considering 20 applications for a total amount of 95.02 billion rubles.
In this connection, Vnesheconombank suspends accepting Russian banks’ new applications for obtaining subordinated loans.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34