WASHINGTON. Oct 13 (Interfax) - VTB is considering sources for replenishing Tier 2 capital, and is still looking towards the Middle East and Asia, VTB CEO Andrei Kostin told journalists.

In September, VTB converted a subordinated loan from National Welfare Fund (NWF) funds into 214 billion rubles of preferred shares. Because of this, Kostin said, Tier 1 capital is at a good level.

"As concerns Tier 2 capital, here we are looking into the situation. I think that we'll need additional Tier 2 capital. For now we're working on the possible source of this replenishment," he said.

This could be money raised from the government or on the market, Kostin said.

"We have had large developments in raising such loans from Middle Eastern countries or from neighboring countries. Such opportunities also exist. These could be loans not necessarily in dollars, [