ANNOUNCEMENT 07 Jul 2009

In July 2009, the government of Russia announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



the Government Decree # 903-p from 7 July 2009


Inception date: 07 Jul 2009 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

Russian Prime Minister Vladimir Putin signed a ruling (the Government Decree # 903-p from 7 July 2009) to inject 180 billion rubles (4 billion Euros) into the charter capital of Vneshtorgbank (VTB Bank) as a measure to support banking system of the Russian Federation during crisis.
 
VTB Bank(http://www.vtb.com/rus/web.html?l=2) history is the history of establishing a standard-bearer for the Russian banking industry. Nowadays, VTB plays the key role in lending to the economy and developing the retail banking market in Russia.
The Bank for Foreign Trade (Vneshtorgbank) was established in October 1990 with governmental support to encourage foreign economic transactions of Russian enterprises. VTB developed successfully as a large specialized bank focused on relations with corporate customers, primarily Russian exporting enterprises.
VTB's IPO in 2007 marked the beginning of a brand new period for the Bank. Owing to one of world's largest IPOs, VTB raised almost USD8 billion, evolving from a large state-owned bank into a world-level credit institution with its shares publicly traded in Russian and international securities markets.
The strategic plan of the Bank and VTB Group are:
1.to become an unquestionable leader of retail banking in Russia;
2.to gain leading positions in the Russian investment banking services market;
3.to expand its operations abroad, primarily in the CIS.

The Bank intends to significantly increase lease and insurance transactions, and boost its activity in asset management, brokerage, private pension coverage and in some other segments of the Russian financial market.
Once these plans are implemented, VTB will bring its consolidated assets to USD150 billion by the end of 2010 and join the world's top 50 banks in terms of capital.

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