Banks may receive 700 bln rubles from NWF for investment project lending - draft resolution
MOSCOW. Nov 17 (Interfax) - Banks could receive up to 20% of the resources that the National Welfare Fund (NWF) held as of November 1, or up to 709 billion rubles, as subordinated loans to be used for investment project lending, under a draft government resolution from the Economic Development Ministry.
The text of the draft resolution, which would amend the rules governing use of the NWF, was published on Friday on the government's unified information disclosure portal.
"The maximum share of subordinated debt obligations of authorized banks related to the implementation of the investment projects of Russian legal entities within the context of approved investment programs is no more than 20% of the total amount of National Welfare Fund resources as of November 1, 2014 but not more than 709 billion rubles," the draft resolution states.
Under the resolution, these subordinated debt obligations would be defined as the subordinated debt obligations of banks registered in Russia that meet the following requirements: have equity of at least 100 billion rubles on the latest reporting date; not be subject to a Central Bank of Russia ban on accepting retail deposits or opening retail accounts under Part 3, Article 48 of the Federal Law On Insurance of Retail Deposits in Banks of the Russian Federation; and have experience implementing at least ten investment projects in the past three years worth at least 3 billion rubles each.
The draft resolution also stipulates that the following requirements must be met when NWF resources are placed in the subordinated debt obligations of authorities banks: the share of funds received by the bank as a result of the placement of subordinated debt obligations must not exceed 40% of the total amount of financing for each investment project under the investment program of the initiating company; and the cost of the funds provided by the authorized bank to the initiator as a result of the placement of subordinated debt obligations cannot exceed the Russian Central Bank's key interest rate plus one percent.