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. Last Updated: 07/27/2016

Long-Term Loans Bank

Russia's sixth-largest bank, Promstroibank of Russia, has entered an agreement with 12 subsidiaries to form a holding company that will focus on long-term investments in industry and infrastructure, a spokesman for the bank said Thursday.


The issuing of long-term loans would be unique among Russian banks, most of which make their money through short-term credits.


Sergei Isayev, a bank spokesman, said the bank had signed agreements with the heads of the regional banks Tuesday to create Bank Holding Promstroibank of Russia, which will seek to fill the void of private Russian financing for manufacturing, transport and telecommunications.


He said that the bankers would meet again in April to decide on specific projects.


Although the holding company's starting capital of 10 billion rubles ($6.38 million) is tiny, Isayev said member banks will contribute more funds for specific projects. The working capital of all 13 member banks amounts to over 4.5 trillion rubles, he said.