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. Last Updated: 07/27/2016

Prosecutor Helps Sberbank With Debts

The Prosecutor General’s Office has helped Sberbank seize collateral worth about $1 billion, and VTB could be next to get such help, Prosecutor General Yury Chaika said Friday.

Sberbank appealed for help after borrowers refused to pay back debt, the prosecutor’s office press service said, adding that debt will be paid back in assets rather than cash.

“With the direct intervention of the Prosecutor General’s Office, Sberbank has got back … around $1 billion. [We] have set up a working group with Sberbank and plan to do the same with VTB,” Chaika said. He declined to name the company involved.

Sberbank and VTB, both state-controlled, hold the lion’s shared of the country’s credit portfolio, some of it backed by potentially lucrative industrial assets.

Real estate, oil deposits and factories have already found their way into the banks’ pockets as firms struggle to pay.