MOSCOW, February 5. /TASS/. The Russian Deposit Insurance Agency unveiled the list of 27 banks eligible for capitalization support through government bonds, the agency said on Thursday.
The mechanism anticipates the transfer of 1 trillion rubles ($15.4 billion) worth from the budget as government bonds through the Deposit Insurance Agency, which will redeem subordinated liabilities of the banks in the program.
The program will cover VTB, VTB 24, Bank Moskvy, Gazprombank, Russian Agricultural Bank, Alfa Bank, Otkritie, KMB Otkritie, Promsvyazbank, MKB, Bank St. Petersburg, Rossiya Bank under sanctions, Uralsib, Ak Bars, Interregional Commercial Bank of Communications Development, Yugra, Zenit, Petrocommerce, MDM Bank, Binbank, Globex, MTC-Bank, Novicombank, Vozrozhdenie, Absolut Bank, Moscow Industrial Bank and Sovcombank.
The Russian government approved the list of eligible banks on February 2. The Deposit Insurance Agency will send an additional capitalization offer to banks soon and set out terms. The banks shall elect or refrain from capitalization support by October 1.
The banks participating in the program shall meet three basic conditions: promote lending for small and medium businesses or mortgage by 1% monthly, increase the equity by 50% of the amount received from the Deposit Insurance Agency on account of their profit, and refrain from raising remuneration for the management and the wage pool amount for other employees.