VTB increases reserving on Mechel loans
MOSCOW. May 27 (Interfax) - VTB has made additional provisions for debt owed by the Mechel group, which is experiencing difficulty servicing its multi-billion dollar debt.
"We increased the reserving percentage on the Mechel loans to reflect the situation at the company, although all Mechel debt remains in the 'in repayment' category," Deputy CEO Herbert Moos said during a conference call on Tuesday.
The increase in reserves for the Mechel debt had no material effect on overall provisioning at VTB, he said.
Moreover, VTB is no longer exposed to risk from fluctuations in Mechel's share price. "We also must note that all of our loans secured with Mechel shares have been repaid. In other words, we no longer have any loans secured with Mechel shares. The remaining debt is for the Mechel operating company. And, as I said before, all of that debt is being repaid," Moos said.
