Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Dividend Law May Force Sberbank to Lend Less

Sberbank will have to slow lending growth if the government orders state-controlled businesses to pay at least 35 percent of earnings in dividends, CEO German Gref said Friday.

Sberbank accounts for about a third of overall lending in Russia. Loan rates charged by Sberbank are, some economists say, more important than the Central Bank's own policy rates in making the economic weather.

"The choice is the following: Either we lose capital by paying out dividends, in which case we would not be able to fund Russian economic growth, or we will get different treatment," Gref told a briefing.

Seeking to boost its budget, the Finance Ministry has proposed increasing the dividend payout ratio for state-controlled companies to 35 percent.

For 2012, Sberbank paid 17 percent of its net profit in dividends under international standards.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

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 you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more