16 Oct 2009 19:42

OFZ recapitalization could apply to companies as well as banks

MOSCOW. Oct 16 (Interfax) - The Russian government is thinking of granting companies the opportunity to increase their capitalization by swapping preferred shares for Federal Loan Bonds (OFZ), Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, told reporters.

The possibility of granting this facility to companies as well as banks was discussed at a meeting with Russian Prime Minister Vladimir Putin, Kudrin said. Ministries and agencies were given two weeks to work on the issue, he said.

The 2009 budget contains 150 billion rubles for recapitalization via OFZ, and the 2010 budget - 250 billion rubles. "This will provide a safety cushion for the top 75 banks in case loans are not repaid," Kudrin said.