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RUSSIA'S SUPPORT TO CYPRUS TO DEPEND ON VTB SITUATION
Topic: Cyprus Bailout
RIA Novosti. Ilona Golovina
22:18 01/04/2013
No State Help to Russians Affected by Cyprus Crisis - Shuvalov Putin
Tells Government to Revise 2.5 Bln Euro Loan to Cyprus Russia Says
Door Still Open for Cyprus Rescue Deal Russia Rejects Cyprus Rescue
Deal Proposals
NOVOKUZNETSK, April 1 (RIA Novosti) - The Russian government will
closely watch the situation around the Russian Commercial Bank,
a subsidiary of state-run VTB, when deciding on the forms of its
support for Cyprus's financial system, Prime Minister Dmitry Medvedev's
spokeswoman Natalya Timakova said Monday.
VTB, Russia's second largest lender by assets, operates in Cyprus
through the Russian Commercial Bank, which holds about 2 billion
euros ($2.6 billion) worth of its client deposits. According to VTB,
the Russian Commercial Bank is Cyprus's third largest bank by assets,
which total 14 billion euros ($18 billion).
Earlier VTB assessed its possible losses in Cyprus in the worst-case
scenario at several millions of euros. Russian First Deputy Prime
Minister Igor Shuvalov said the Russian Commercial Bank is a bank
with no problems, and that the Russian authorities hope it would
either not be affected at all or suffer minor losses.
Timakova said Medvedev had a meeting on Saturday with the Russian
government's financial bloc, including the Central Bank head, to
discuss restructuring of a loan Russia issued to Cyprus in 2011,
as well as measures to protect the Russian Commercial Bank.
President Vladimir Putin's spokesman said March 25 that Russia would
consider restructuring its multibillion euro loan to Cyprus. This
came after the island nation secured a eurozone bailout to save its
outsized banking sector from collapse. The rescue measures included
a levy on uninsured deposits larger than 100,000 euros ($128,000)
at Cyprus's second largest lender, the Popular Bank of Cyprus.
Russian banks and companies have favored Cyprus since the 1990s,
taking advantage of the nation's low taxes and easy business
regulations. Russian banks held about $12 billion on deposit with
Cypriot banks at the end of 2012 while Russian corporate deposits
accounted for another $19 billion, according to estimates by the
international rating agency Moody's.
Topic: Cyprus Bailout
RIA Novosti. Ilona Golovina
22:18 01/04/2013
No State Help to Russians Affected by Cyprus Crisis - Shuvalov Putin
Tells Government to Revise 2.5 Bln Euro Loan to Cyprus Russia Says
Door Still Open for Cyprus Rescue Deal Russia Rejects Cyprus Rescue
Deal Proposals
NOVOKUZNETSK, April 1 (RIA Novosti) - The Russian government will
closely watch the situation around the Russian Commercial Bank,
a subsidiary of state-run VTB, when deciding on the forms of its
support for Cyprus's financial system, Prime Minister Dmitry Medvedev's
spokeswoman Natalya Timakova said Monday.
VTB, Russia's second largest lender by assets, operates in Cyprus
through the Russian Commercial Bank, which holds about 2 billion
euros ($2.6 billion) worth of its client deposits. According to VTB,
the Russian Commercial Bank is Cyprus's third largest bank by assets,
which total 14 billion euros ($18 billion).
Earlier VTB assessed its possible losses in Cyprus in the worst-case
scenario at several millions of euros. Russian First Deputy Prime
Minister Igor Shuvalov said the Russian Commercial Bank is a bank
with no problems, and that the Russian authorities hope it would
either not be affected at all or suffer minor losses.
Timakova said Medvedev had a meeting on Saturday with the Russian
government's financial bloc, including the Central Bank head, to
discuss restructuring of a loan Russia issued to Cyprus in 2011,
as well as measures to protect the Russian Commercial Bank.
President Vladimir Putin's spokesman said March 25 that Russia would
consider restructuring its multibillion euro loan to Cyprus. This
came after the island nation secured a eurozone bailout to save its
outsized banking sector from collapse. The rescue measures included
a levy on uninsured deposits larger than 100,000 euros ($128,000)
at Cyprus's second largest lender, the Popular Bank of Cyprus.
Russian banks and companies have favored Cyprus since the 1990s,
taking advantage of the nation's low taxes and easy business
regulations. Russian banks held about $12 billion on deposit with
Cypriot banks at the end of 2012 while Russian corporate deposits
accounted for another $19 billion, according to estimates by the
international rating agency Moody's.