RZD President Vladimir Yakunin doesn't look like a weak-nerved financier, whom he calls to get rid of.
Photo: Grigoriy Sobchenko
| Other Photos |
 |
|
 |
Russian Railways to Rescue Investment Bank
The RF government proceeds with the efforts aimed at rescuing private banks and the methods are getting more and more sophisticated. Following Svyazbank, which saving is today’s concern of VEB, Russian Railways (RZD) will buy out KIT Finance that is on the verge of bankruptcy. The purchase won’t cost much to monopoly. RZD will pay just 100 ruble for the bank and the government will refinance its debts.
KIT Finance investment bank announced yesterday that the investors’ consortium of ALROSA and RZD is buying out 90 percent in it. The consortium will also get control over KIT Finance Strakhovanie (Insurance) bank and a share in the venture with Fortis Investments. Once the deal is completed, ALROSA and RZD will have 45 percent in the bank each and the remaining 10 percent will go to other holders.
According to RZD President Vladimir Yakunin, he was proposed to buy KIT Finance four days ago. But it wasn’t the question of forcing the railway monopoly to rescue that investment bank. “By that time, the plan to pull KIT Finance out of the crisis without our participation had been elaborated,” Yakunin explained, pointing out that, after certain deliberation, the deal appeared quite promising to them.
“RZD agreed in the end,” an anonymous source said to clarify the situation.
RZD won’t incur great costs, Yakunin promised. “We are buying out the investment bank conditionally, for 100 ruble. Settlement of its financial problems has been guaranteed,” he said, mentioning a protocol sanctioned by the RF Finance Ministry.
According to a source familiar with the deal progress, the matter at stake is the protocol that the RF Finance Ministry, RZD, ALROSA and Gazprombank inked yesterday. Gazprombank granted an annual credit of 30 billion ruble to KIT Finance in September.
Under the protocol, KIT Finance will get roughly 40 billion ruble to meet repo obligations, its mortgage loans of roughly 50 billion ruble will be bought out in the next effort. After it, they will decide the destiny of 40 percent in Rostelecom owned by KIT Finance and the biggest creditors of the bank will be prompted to freeze funds for two years at 7 percent on year. The problems with other creditors will be settled as the work advances.
www.kommersant.com
All the Article in Russian as of Oct. 09, 2008
|
|
|
