Arab Today, arab today russia to boost rusag bank’s capital by 30bn roubles
Last Updated : GMT 15:47:33
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Russia to boost RusAg bank’s capital by 30bn roubles

Arab Today, arab today

Arab Today, arab today Russia to boost RusAg bank’s capital by 30bn roubles

Moscow - Itar-Tass

State-owned Russian Agricultural Bank (RusAg) will be additionally capitalized by 30 billion roubles in 2013, First Deputy Finance Minister Tatyana Nesterenko told journalists in the State Duma on Friday. RusAg was previously reported to have received 40 billion roubles from the state budget in 2012. Russian President Vladimir Putin earlier expressed concerns about the bank’s inadequate capital and bad debts and instructed the government to look into the situation. Over the past five years the state has invested 106.8 billion roubles in RusAg’s capital, yet the bank warned it was insufficient after a streak of calamities affected the agricultural businesses and many defaulted on their loans. This year the bank has announced it would need an additional amount of 40-60 billion roubles. A source close to the bank’s supervisory council said the amount of 60 billion roubles was stipulated in the bank’s strategy. However, the officials had hoped 40 billion would be enough or not needed at all as they expected the bank would be turned into an agriculture development institution. In that case it would not have to comply with CBR standards.

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