Russian President Dmitry Medvedev Meets with Chairman of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ Vladimir Dmitriev
At his meeting with VEB Chairman V. Dmitriev Mr. Medvedev said that measures for supporting the financial system should be implemented promptly and efficiently.
Gorki (Moscow region). October 23. INTERFAX - Russian President Dmitry Medvedev has instructed Vnesheconombank Chairman Dmitry Medvedev to act as fast as possible to implement laws on supporting the financial system of the Russian Federation. “I’ve got only one wish. Decisions have been made, the money has been allocated, and this is considerable money compared to the funds spent to respond to the global financial crisis in other countries. The most important thing is to act promptly and efficiently and we should make decisions as fast as necessary”, said D. Medvedev at a meeting with VEB Chairman Vladimir Dmitriev in the Head of State’s country residence.
“Of course, you are not the only one responsible for this, but given the fact that at present you are the main operator responsible for allocating these funds, you should act as fast as possible”.
“We base our activity on this”, said V. Dmitriev adding that along with considering the Law the Bank itself took necessary actions to ensure its implementation. “This means you have an internal regulatory framework and a procedure in place?” asked D. Medvedev. “Yes, we have”, answered V.Dmitriev.
VEB received applications worth $100 billion and is soon to extend 100 billion rubles to VTB and 25 billion to Rosselkhozbank – VEB’s Chairman says.
Gorki (Moscow region). October 23. INTERFAX – Vnesheconombank processed and signed documents with VTB and Rosselkhozbank and in the near future is to expend them 100 billion rubles and 25 billion rubles, respectively, VEB Chairman Vladimir Dmitriev said at a meeting with Russian President Dmitriev Medvedev in the Head of State’s country residence. He said that the Bank started to implement the Law “On Additional Measures for Supporting the Financial System of the Russian Federation”. V. Dmitriev said that at present the Bank was collecting applications for refinancing foreign debts from Russian corporations.
“To this end, Vnesheconombank Supervisory Board approved relevant documents. A task force is working now to achieve this objective in line with the standards approved by the Bank’s Supervisory Board”, said he.
According to him, “the Bank received applications for a total amount of 100 billion dollars, most of them are from banks and about 30 billion dollars account for Russian corporations that raised borrowings abroad prior to October 25,
“That is, banks that would like to repay their foreign debts with our rubles?” asked Mr. Medvedev.
“You are quite right”, answered V.Dmitriev.
He noted that VEB is also playing an important role in implementing another provision of the Law, specifically, the one for extending subordinated loans.
“Subordinated loans are such ones that are distributed throughout the whole system”, explained the President.
“Yes, they form second-level capital making it possible to work with this money and they also increase capital base making it possible to make borrowings”, added V.Dmitriev.
“Accordingly, we have developed and signed all the documents with the first two banks - with VTB and Rosselkhozbank,” said V.Dmitriev.
He said that in the most immediate future and they hoped this week they would extend a 100 billion ruble subordinated credit to VTB and a 25 billion ruble subordinated credit – to Rosselkhozbank.
“We have also received applications worth 30 billion rubles from other Russian banks”, said VEB’s Chairman.
“Our Bank has already approved and I hope the Bank’s Supervisory Board will approve this week procedures for extending subordinated credits”, said V.Dmitriev. “We are fully equipped to fulfill this task”, he added.
VEB fulfils stabilization tasks assigned to it - VEB’s Chairman says.
Gorki (Moscow region). October 23. INTERFAX - Vnesheconombank (VEB) is fulfilling tasks of stabilizing the Russian financial system in full and in line with the law, said Vnesheconombank Chairman Vladimir Dmitriev at a meeting with Russian President Dmitry Medvedev in the Head of State’s country residence.
“We have already received a decision by the Finance Ministry and our Supervisory Board concerning 175 billion rubles received from the National Wealth Fund”, said V.Dmitriev.
Speaking about the task of stabilizing and sustaining the Russian stock market he noted that VEB uses its own funds, as well to stabilize the situation. “As you know, and to tell you the truth, this task is not stipulated in the law, we are participating in rescuing two major Russian banks, namely, Svyaz-Bank and Globexbank. These banks are among 50 largest Russian banks”, said Dmitriev.
“As far as Svyaz-Bank is concerned, we are making full use of resources worth 2.5 billion dollars provided to us by the Central Bank”, he added.
According to him, these funds are being used to enable Svyaz-Bank to make payments and fulfill all its obligations to depositors, legal entities and also made it possible to transfer pensions to 15 million pensioners who receive their pensions through Svyaz-Bank.
“Thus, VEB is fulfilling tasks of stabilizing the financial system of the Russian Federation in full and in accordance with the law other regulatory documents”, said V.Dmitriev.
The Government of the Russian Federation allocated 175 billion rubles from the National Wealth Fund to Vnesheconombank. As agreed with the Russian Finance Ministry the said funds are to be invested in the instruments of the Russian financial market. This measure would help diversify the National Wealth Fund’s investments through purchasing Russian securities and would optimize the Fund’s financial resources management. This move aims to stabilize the Russian stock market. Vnesheconombank will place the funds in tranches.
Origin: Press Office of Vnesheconombank
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