Anton Siluanov.(AFP Photo / Nicholas Kamm)
Banks in Russia will get a government boost to finance debt and projects as the country risks recession. On Friday, the State Duma passed the last two readings of a law to allocate up to 10 percent, or $6.54 billion, from a sovereign wealth fund.
The law is essentially a bank bailout from the Ministry of Finance.
Once the bill is signed into law, Russia’s largest state-owned banks, Sberbank, VTB, VTB 24, Gazprombank, the Russian Agriculture Bank, and Bank of Moscow, as well as private banks such as Alfa-Bank, UniCredit Bank, and Rosbank (Societe General) will be eligible for loans, but no final list has been drawn up.
Many of the banks are sanctioned, and therefore are locked out of Western capital markets.
Credit institutions with more than $1.7 billion (100 billion rubles) in capital will be eligible for the money which will be…
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