№6 June 2009
The repaying of loans given to Russian
companies in order to buy out their assets from Western financial
institutions cannot last indefinitely, and borrowers must start building
their business as usual, Russian Prime Minister Vladimir Putin said at a
meeting with Vnesheconombank (VEB) chairman Vladimir Dmitriyev on
Putin asked how much money was spent "to pull our large companies'
assets from Western financial institutions and to re-deposit them with
A total of $10 billion has been spent, with Rosneft having repaid
its $577 million loan early, and others using the resources provided by
VEB for refinancing fully and on time, the VEB chief said.
Companies which received refinancing and "those which are likely to
apply for an extension at the end of the lending period, certainly
welcomed the decision by the VEB supervisory board allowing a one-year
extension of these loans," Dmitriyev said.
"Naturally, [such extensions are possible] provided that all
original loan terms, as well as pending and additional conditions are
complied with," the VEB chief said.
"Basically, we have prepared draft loan agreements, but the
extension of these loans will be based on market rates, and the main
financial terms must be agreed upon at the time of loan extension,"
"I mean those market rates that will be applicable to any
particular borrower depending on his risk on the part of financial
institutions on the day of extending the loan," the VEB chief said.
"This is a timely measure, it was our conscious decision amid the
global financial crisis. At the same time, bank clients must understand
that prolongation cannot last forever. They have to gradually start
building their business as usual," Putin said.