VEB discusses converting 212 bln rubles of Central Bank debt into perpetual loan
MOSCOW. Dec 26 (Interfax) - Vnesheconombank (VEB) is discussing the option of converting 212 billion rubles in debt owed to the Central Bank into a perpetual loan, VEB First Deputy Chairman Nikolai Tsekhomsky told journalists.
VEB received the money during the 2008-2009 crisis to carry out the sanation of Sviaz-Bank and Globex Bank. The money was provided in the form of a deposit that was subsequently converted into bonds.
"The possibility of conversion into a perpetual loan that would cover the actual costs connected with the sanation of those banks - 212.6 billion rubles - is being considered," Tsekhomsky said.
VEB chief Sergei Gorkov said first of all the banks must be sold.
At the end of January, VEB said that Sviaz-Bank and Globex would be transferred to the Deposit Insurance Agency (DIA) on the basis of a market valuation and the loans the Central Bank provided for their financial recover would be converted into a perpetual, subordinated loan. However, the DIA arrangement was never implemented and VEB returned to the idea of selling the banks on the market.