31 Mar 2010 13:15

IFC could present up to $250 mln in additional capitalization for Russian banks

MOSCOW. March 31 (Interfax) - International Finance Corporation's (IFC, a part of the World Bank group) board of directors will vote on a new project for boosting the capitalization of Russian banks at a meeting slated for April 29.

Total investment in this regard could reach $250 million, the materials said.

Investment would be made in private commercial banks. Bank will also receive other types of financing, which could be included in their capital according to current legislation.

The IFC plans to invest mainly in private commercial banks, which have substantial regional market shares, the corporation told Interfax.

IFC Asset Management Company, an IFC subsidiary, will oversee the project.

Last year IFC commenced work on a new form of additional capitalization to Russian banks. The IFC's senior manager for Central and Eastern Europe, Timothy Krause, said that the investment would be provided over a two to three-year term. The IFC will leave the new projects over a period of three to five years.

The IFC earlier discussed a project for providing additional capitalization on the condition of state involvement in it.