20 Apr 2010 17:16

MinFin and CB allow banks to pay subordinated loans early - Kudrin

MOSCOW. April 20 (Interfax) - Russia's Finance Ministry and Central Bank decided to allow banks that have raised subordinated loans to implement preterm payments, Deputy Prime Minsiter and Finance Minister Alexei Kudrin told journalists on Tuesday.

"Along with the CB, we have decided to allow those banks with subordinated loans to return them [on a preterm basis] if they want to do this," he said.

"We believe that those banks, which have capital issues and would like to retain raised capital and pay for this the corresponding rate, should keep it [the loans]," Kudrin said. He added that those banks without capital problems should be able to repay subordinated loans preterm and take "a loan at lower rates on the market."