Officials and VEB have agreed on the early return of subordinated loans

Ministry of Finance (MOF), the Russian Federation, a public corporation and Bank of Russia VEB reviewed and identified the approximate scheme of early repayment issued by Russian banks subordinated loans. This scheme provides for the reduction of their rates with currently installed level, but above, the mark of 4.75% per annum. This was stated by deputy head of the ministry Alexey Savatyugin. "The concept is discussed, in any case be provided for the possibility of early return (...) 4.75% per annum - this is too optimistic. If there would be a drop, it is not up to such low levels," - said Savatyugin. Conditions are the same for all credit institutions. A few days later the decision will be fully developed, he promised. Early last week, chairman of the Duma Committee on Financial Markets, Vladislav Reznik said that he intends to end of April to the State Duma a bill that would lower the rate of subordinated loans to the Savings Bank and other banks to 4.75% from 8.00%. Recall that the subordinated debt - credit institutions loan (a loan), which simultaneously meets the following conditions: - the term of the subordinated loan is at least 5 years - a subordinated loan agreement contains a provision about the impossibility of its early termination - terms of subordinated debt does not significantly differ from market conditions to provide similar loans at the time of delivery - a subordinated loan agreement contains a provision that in case of bankruptcy of a credit institution on the loan requirements are met, after full satisfaction of all other creditors. Such a loan at the end of 2008 of $ 500 billion rubles for 10 years at 8% per annum was granted by the major shareholder of Sberbank, Bank of Russia. This was done under the provisions of the law on anti-crisis support Russia's financial system. Other banks under the law to obtain loans from the National Welfare Fund, the Ministry of Finance placed on deposit at VEB. Russia's largest bank many times stated that the funds most expensive liability for the bank. According to top management "Sberbank, the bank wants it back this year and raise funds on the market at prices substantially lower than the rate of 8%. Meanwhile, the Bank of Russia on April 9, has not received a formal proposal from the Savings Bank to return the subordinated loan.