VEB Seeks Central Bank Refinancing as Ukraine Losses Loom | News | The Moscow Times:
"As economic forecasts for Russia become increasingly dire, state-owned development bank Vneshekonombank, or VEB, will likely be tapped to help prop up the struggling economy.
But the bank is entering the slowdown in a tricky position — it is negotiating massive refinancing and has warned of losses in its Ukrainian operations. Profits are down, and a $2.45 billion syndicated loan is due this month to Western creditors who have suddenly become less willing to roll over the bank's debt as a result of the ongoing crisis in Ukraine.
"Amid the political uncertainty, not all banks are ready to commit to a new loan," VEB's deputy chairman Alexander Ivanov said this week. Asian investors could take the place of Western ones, but it will not happen overnight, Ivanov said, and so VEB will simply have to repay the loan."
'via Blog this'
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