Renaissance Group Gets $250M Loan

Renaissance Group received $250 million in a collateral-free loan from the Central Bank, chief executive Stephen Jennings said in a presentation to staff.

The loan helped the group avoid selling the consumer-credit arm Renaissance Credit to VTB, said a source who heard the presentation Tuesday.

"That was the financing needed to stabilize Renaissance Credit," the source said.

The Central Bank began collateral-free loan auctions Monday as part of a government anti-crisis package, lending 388 billion rubles ($14.41 billion) to financial institutions.

Financial industry sources have said VTB was in talks to buy the unit, but VTB wanted control and Renaissance was loath to relinquish it.

Late Tuesday, a source at VTB said the deal would not go through.

Renaissance cut about 100 staff last week, but no further cuts were announced Tuesday, the source who heard the presentation said.