Decision to change rates on subordinate loans will be all inclusive
MOSCOW. April 9 (Interfax) - A decision to change rates on earlier allocated subordinated loans to Russian banks will be applicable for all parties involved, the Central Bank's Chairman, Sergei Ignatiev, told journalists on Friday.
"It will be a general decision. It, as far as I know, has been generally approved," he said, adding that this measure would be made public in the near future.
Ignatiev declined to specify the authorities' decision in the future in this regards, whether it will be to lower rates or for possible preterm payment. He added that Sberbank had not applied for a preterm payment on subordinated loans worth 500 billion rubles.
Deputy Finance Minsiter Alexei Savatyugin earlier said that the Finance Minister could allow for rates to drop on subordinated loans for banks, including those allocated to Sberbank .
The Finance Ministry currently is estimating possible losses for the budget and the National Welfare Fund that would result from a rate decrease, Savatyugin said in mid-March.
The largest subordinated loan went to Sberbank at the end of 2009. Upon the onset of the financial crisis, the CB provided the bank a 10-year subordinated loan worth 500 billion rubles at 8%.
In addition to Sberbank, state subordinated loans have been raised by 20 banks including VTB , Rosselkhozbank (RSHB), Gazprombank and Alfa Bank , worth a combined 408.02 billion rubles. Vnesheconombank (VEB) allocated these loans.