Russian Prime Minister Dmitry Medvedev has announced that Russian state bank Vneshekonombank will receive a bailout of 150 billion rubles ($2.2 billion), the Interfax news agency reported Tuesday.
In a meeting with the bank's board, Medvedev announced that having lost access to international market assets because of sanctions, the bank had lost its ?€?margin of safety?€™ and now ?€?unorthodox measures?€™ are needed to support it.
?€?The current plan of action, which was developed in 2014, is no longer valid for a variety of reasons,?€? Medvedev said, Interfax reported.
?€?I would like to inform you that a decision has been made to increase VEB capital to 150 billion rubles. This money will provide financial stability in 2016, fulfilling its obligation to external borrowing in capital markets,?€? Medvedev said.
?€?The decision is taken in the framework of a general government plan of action to provide stable socio-economic development to Russia this year,?€? he added.
The amount will be given to VEB in equal installments of 50 billion rubles ($724 million). The meeting was the first since the arrival of new bank head Sergei Gorkov at the end of February.