Bank of Moscow might allocate RZD up to 25 bln rubles in loans over a year
MOSCOW. July 1 (Interfax) - Shareholders in Bank of Moscow, at their annual meeting on Monday, June 27, approved a loan facility for Russian Railways (RZD) for the coming year with a limit of up to 25 billion rubles, the bank said in a statement.
The interest rate for the loans, for a period up to seven years, will come to at least 3.5%. RZD will place the funds in Bank of Moscow's deposits for a period of up to five years with interest payouts depending on the time of the placement with a rate up to 15%.
Both sides will sign an agreement for banking guarantees for this facility valid for a period of five years with compensation payments for their allocations at no less than 0.2% of the total guarantee.
The statement did not specify how the funds would be earmarked.
According to RZD's financial reporting for the first quarter of 2011, by the end of 2010, the company had entirely paid off debt owed to Bank of Moscow (4.95 billion rubles at the start of 2010), transferring over 5 billion rubles, including 58.586 million rubles raised in 2010.
Bank of Moscow was sixth biggest bank in Russia by assets at the end of the first quarter of 2011 according to the Interfax-100, compiled by the Interfax Center for Economic Analysis. VTB acquired 46.5% in the bank, as well as a blocking packet of shares in Capital Insurance Group, which, in turn, owns around 17% in the bank.