Support The Moscow Times!

Bank of Moscow Rebuts VTB

The Bank of Moscow on Tuesday described critical statements about the bank by VTB's top executives as a ploy to seek a lower acquisition price.

VTB, the country's second-largest lender, has said it wants to buy control of the Bank of Moscow in what would be the biggest banking deal in the past few years.

The VTB executives, including CFO Gerbert Moos, reportedly told a group of industry analysts that they were concerned the Moscow city government didn't effectively own control of the Bank of Moscow and insisted the Bank of Moscow's cash flow was too dependent on the city budget.

The Bank of Moscow said the statements — carried in a Vedomosti story Monday — were wrongful and represented an attempt to “reduce the value of the Bank of Moscow's stock” ahead of a possible acquisition by VTB.

“Public comments that regard activity of another company, especially if they are based on inaccurate facts, run counter to the principles of business ethics and mislead customers,” the Bank of Moscow stated. “A potential buyer would act more constructively by holding discussions with all the concerned parties at a negotiating table.”

According to the lender's web site, City Hall directly owns 46.5 percent of the stock. Insurance company Stolichnaya Strakhovaya Gruppa, which says its 25 percent belong to the city government, owns another 17.3 percent of the bank.

The city budget funds account for only 12 percent of the Bank of Moscow's assets, the bank said.

The lender also responded to the doubts that its bad debt ratio was 4 percent to 5 percent, lower than the average of at least 7 percent for the sector. It said the bank was “extremely conservative” about risk management.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more