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Report: VEB units may require financial aid

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Report: VEB units may require financial aid

Bailedout with the help of Vnesheconombank (VEB) in 2008, andInterregional Bank forSettlements of the Telecommunications & Postal Services (alsoknown as Sviaz-Bank) may once again need financial support, as significantparts of their assets require additional provisioning, Vedomosti reported April 7.

TheRussian central bank, the Deposit Insurance Agency and the lenders' auditor areassessing how much capital is required to increase the banks' loan-lossprovisions, with estimates ranging from 60 billion Russian rubles to 100billion rubles, according to sources cited by the newspaper.

InJanuary, VEB announced that it plans to sell Sviaz-Bank and Globex to the DepositInsurance Agency, but Vedomosti saidthe parent still has not decided what to do with the two units. Their futurewill be determined toward the end of June, VEB's new head Sergey Gorkovreportedly said recently.

The2008 bailout of the banks cost the Russian state 212 billion rubles, Vedomosti noted.

As of April 7, US$1 wasequivalent to 68.27 Russian rubles.