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. Last Updated: 07/27/2016

ARKO Asks Government for Funds

Russia's state agency in charge of bank restructuring, ARKO, has asked the government for extra funds in the form of securities, an agency official said Wednesday.

"The government should propose the kind of securities it could be. Other countries usually use government securities in similar cases, but here we can use central bank paper," Deputy Chief Valery Miroshnikov told journalists.

ARKO, with 10 billion rubles in capital, is owned by the government and the Central Bank and is charged with restructuring damaged banks.

News of the request follows an ARKO announcement Wednesday that it will extend a $41 million loan to Alfa Bank to help it set up at least 10 regional branches. The decision is putting ARKO under fire because Alfa Bank, considered one of the few relatively healthy banks left operating in Rusa, is a far cry from the type of bank that ARKO was designed to rescue.