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Weekly Lists
December 8, 2017 www.intellinews.com I Page 25
bne:Banker CBR to pump
RUB456.2bn into ailing Financial Corporation Otkritie
The Central Bank of Russia (CBR) will spend RUB456.2bn ($7.7bn) on new capitalisation for the ailing banking group Financial Corpo- ration Otkritie, the regulator announced on December 7.
RUB189.1bn will be used to cover the difference between the lend- er's assets and liabilities, while another RUB182bn will be spent on forming the new capital of the lender.
The rest of the cash will be spent for the support of the group's other assets, including insurance company Rosgosstrakh and pen- sion funds Lukoil Garant, NPF Elektroenergetiki and NPF RGS. Trust, a lender owned by the group, won't receive any funding as the CBR has already spent RUB127bn on its rescue via the Deposit Insurance Agency (DIA).
The extra capitalisation of Otkritie will allow the group to remain within norms stipulated for the banking sector, the regulator said.
Karl Erjavec, Slovenia’s foreign minister and the president of the Democratic Party of Pensioners of Slovenia (DeSUS), expects the privatisation of the country’s largest lender Nova Ljubljanska Banka (NLB) will be deferred at least until after the general elections in spring 2018, Slovenian Press Agency (STA) reported on December 6.
The vexed question of the privatisation of NLB — required under Slovenia’s commitments to the European Commission — could make it difficult for Prime Minister Miro Cerar’s Modern Centre Party (SMC) to continue its coalition with DeSUS and the Slovenian Social Democrats (SD) post-election. Both junior coalition parties have opposed the privatisation so far. Earlier in November, the coa- lition decided not to privatise NLB by the end of 2017.
Tajikistan’s troubled Agroinvestbank announced last week its in- tention to start selling off assets as its funds are insufficient for returning depositors’ money. The bank aims to sell 17 vehicles and 550 units of computer and cash register equipment to interested individuals, companies and credit institutions.
Tajik banks have been hit hard by the country’s economic problems, much of them linked to declining exports to, and remittances from, Russia. The situation has left many Tajik businesses and individuals unable to repay their loans to banks and microfinance institutions. The rise in non-performing loans has subsequently eroded the banks' capital buffers.
Slovenian ruling coalition divided over NLB privatisation
Troubled Tajik Agroinvestbank begins asset sales as it struggles to recapitalise