Enter to open, tab to navigate, enter to select
The procedure for VEB granting subordinated loans to Russian banks was amended
Practical Law UK Legal Update 4-386-1990 (Approx. 2 pages)
The procedure for VEB granting subordinated loans to Russian banks was amended
by White & Case LLP
| Published on 28 May 2009 • Russian Federation |
Speedread
Under anti-crisis measures passed in October 2008, VEB can grant subordinated loans to Russian credit organisations. On 7 May 2009 VEB amended its criteria for doing so, including changing the minimum charter capital requirement.
On 7 May 2009 it was reported that the Supervisory Board of Vnesheconombank (VEB) decided to amend the procedure for granting subordinated loans. The information was published on the VEB's website.
Under Federal Law No. 173-FZ "On Additional Measures for the Support of the Financial System of the Russian Federation," dated 13 October 2008, VEB is entitled to grant subordinated loans to Russian credit organisations that meet the criteria set by the Law and VEB's Supervisory Board.
Thus, the list of criteria to be met by borrowers has been amended to include the requirement for their charter capital to be a minimum of RUB3.5 billion. In addition, borrowers are required to ensure on-lending of received funds to the real sector.