VTB buys a share in Belarusian subsidiary to the end of the year

VTB Group is ready to help Belarus float new sovereign bonds on foreign markets and refinance the ones that have been floated already.

Vladimir Ivanov, Chairman of the Board of ZAO VTB Bank (Belarus) said: “We will be pleased to do it if the Belarusian side contacts us”. The terms will be more attractive than the terms Belarus had been offered by previous partners, he said. The VTB Bank head pointed out that the Belarusian Finance Ministry believes that government bonds are quite an expensive borrowing instrument, they are more expensive than direct loans, and therefore, has made VTB Group no such proposals. 

Yet Vladimir Ivanov pointed out positive trends in the field. With the demand for Belarusian eurobonds on foreign markets rising, their profitability drops as well as the price Belarus has to pay for the instrument. They are still quite expensive for the country, he added. Direct borrowing will cost less for Belarus, for instance, borrowing from VTB.

It has been reported earlier that Russian VTB Bank, which is part of VTB Group, is a potential partner of Belarus in refinancing the $1 billion syndicated loan issued by the European Development Bank and Sberbank of Russia to the Belarusian company Belaruskali. Sberbank itself has offered help in refinancing the loan.

The expert believes that this year will be rather predictable as far as Belarus’ finance is concerned and will not see global changes. The exchange rate of the Belarusian ruble will be quite steady, it will not drop considerably in relation to foreign currencies. The banker expects the US dollar exchange rate to be under Br8,500 till the end of the year.

Besides, at present VTB Group is working on buying out the 25.9% Belarus-owned package of shares in Belarusian ZAO VTB Bank and expects to own nearly 100% of its daughter bank. Experts believe that the deal may be closed by the end of the year.

ZAO VTB Bank (Belarus) is a universal bank that has been working in Belarus since 1996. It is a steady member of Belarus’ ten largest banks. OAO VTB Bank (Russia) owns the controlling interest of 71.4% in VTB Bank (Belarus).