Russian agency clears 2 bank bailouts, reviews 10
MOSCOW, Nov 10 (Reuters) - Russia's federal deposit insurance agency has approved bailouts for two regional banks and is reviewing the need of 10 others for similar assistance, the head of the agency Alexander Turbanov said on Monday.
He said the central bank is providing the agency with loans for the bailouts at 5.5 percent interest. It will then lend this money at 6.5 percent to parties willing to invest in the struggling banks.
"In the case of two banks the rehabilitation plan has been approved... The financial condition of another ten are being reviewed at the suggestion of the central bank so that we can determine how to proceed," Alexander Turbanov said, declining to name them.
"We think it is fair to set the interest rates lower than the market is offering, because the investors are taking on very big risks," Turbanov said.
He added that his agency and the central bank are focusing on Russia's 200 largest banks, but are also taking into account the social and economic importance of the banks eligible for assistance.
Important factors are the volume of deposits they hold for private individuals and the size of their portfolio of loans to sectors of the real economy, he said. (Reporting by Dmitry Sergeev, writing by Simon Shuster; Editing by Hans Peters)
