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Report: Promsvyazbank eyes another capital boost from Russian state

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Report: Promsvyazbank eyes another capital boost from Russian state

Russian authorities plan to provide a 50 billion Russian ruble capital injection for PAO Promsvyazbank, with the funds to be allocated over the next three years, starting from 2019, news agency Prime reported March 13.

Russian Deputy Finance Minister Alexei Moiseev said the transfer of Interregional Bank for Settlements of the Telecommunications & Postal Services, or Sviaz-Bank, to Promsvyazbank, which is being considered by Russian authorities, could count as part of the planned capital boost for the latter, if it also includes Sviaz-Bank's capital. Moiseev said, however, that a formal decision on the potential takeover of Sviaz-Bank by Promsvyazbank has not yet been made.

Promsvyazbank was taken over by the Russian central bank in December 2017, and the government later said the lender will focus on servicing Russian defense sector companies to shield other local lenders from Western sanctions. In 2018, Promsyvazbank received a 25 billion ruble capital boost from Russia's federal budget, Prime reported.

As of March 20, US$1 was equivalent to 64.34 Russian rubles.