//
you're reading...
Others

Russia to bailout its largest State-owned “bank”

Stefano F. Fugazzi (ABC Economics) – According to Bloomberg, Russia’s Vnesheconombank (VEB), a former Soviet bank, one of the largest State-owned corporations (technically a “Bank for Development and Foreign Economic Affairs”), is “on the brink of collapse”. Hit by Western sanctions last year and with foreign currency debts totaling $15 billion, VEB has stopped new lending.

The Russian government is now expected to rescue the troubled entity.

The cost of its bailout could reach 1.3 trillion rubles ($18 billion), according to several senior government officials.

“The government can’t just leave it alone to face the problems caused by the financial and economic situation in the country, speaking directly, by various kinds of sanction pressures” Prime Minister Dmitry Medvedev told a VEB board meeting discussing rescue options on Dec. 22.

For years, Vladimir Putin used VEB to pay for “special projects” from the Sochi Olympics to covert acquisitions in Ukraine to oligarch bailouts.

VEB2_0

VEBAssets_0

Click here to view ABC Economics SPECIAL REPORT on RUSSIA

 

 

Advertisements

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

acquista ABC ITALIA, edizione 2016

Click here to download “Brexit?”, Fugazzi’s new book on the EU Referendum

ABC Economipedia, 2nd edition now out!

London One Radio

PIL – Professionisti Italiani a Londra

%d bloggers like this: