Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

VEB Asked for $3Bln in Subordinated Loans

DAVOS, Switzerland — Vneshekonombank has received requests from 60 banks for about 100 billion rubles ($3 billion) in subordinated loans, VEB chief Vladimir Dmitriyev said.

The state corporation has been entrusted with distributing 450 billion rubles of subordinated loans to banks.

"We have received requests from about 60 banks for a total of about 100 billion rubles," Dmitriyev said on the sidelines of the World Economic Forum.

"We already have a decision for three banks for a total of 17 billion rubles, and the financing must start very soon," he said late Thursday.

"The management of the bank will also recommend to the supervisory board that a decision be made for another four banks on a total of 19 billion rubles," he said. He did not name the banks.

Russian lenders are facing growing numbers of bad loans as the economy heads for its first annual contraction in a decade and companies find it difficult to refinance their foreign debts.

Dmitriyev said Russian companies have made bids for about $80 billion in help to restructure foreign debts, calling previous estimates of $90 billion incorrect.

"We have received bids of a little over $80 billion for help in refinancing the foreign debts of companies," Dmitriyev said.