Russian Prime Minister Dmitry Medvedev signed an order on the placement of 100 billion rubles from the funds of the National Welfare Fund (NWF) in a subordinated deposit at VTB, the government's press service said.
The Finance Ministry was ordered to recapitalize VTB before the end of the
year.
The period of the deposit is 30 years, the rate is inflation +1% per annum.
The funds are marked for financing by the bank of sustainable infrastructure
projects.
“This decision allows the bank to guarantee support for the capital adequacy
ratio at an acceptable level,” the statement said.
Earlier Finance Minister Anton Siluanov said that the Finance Ministry still
has not prepared the list of projects that will be financed by banks receiving
money from NWF. Therefore the 100 billion rubles allocated to VTB this year will
be invested in federal loan bonds (OFZ).
“Once the project is ready, they will come from securities and invest in the
project,” the minister said, adding that this concerned Russian Railways’ (RZD)
project.
In total, VTB asked the NWF for about 250 billion rubles.
