They gave me money

Following a meeting with President Dmitry Medvedev after another fall in the Russian stock market, it was decided to provide banks with a loan in the amount of up to 950 billion rubles for no less than five years.

Sberbank will receive up to 500 billion rubles from this amount, Vneshtorgbank will receive up to 200, and Rosselkhozbank will receive up to 25.

In addition, it was decided to initiate amendments to legislation regarding the simplification of the rules for collecting debt secured by collateral and the procedure for reorganizing credit institutions. Medvedev demanded that the government finalize proposals for relevant changes and submit them to the Duma as soon as possible.

The loan that it was decided to issue to banks is called subordinated. It is given for a period of at least five years and cannot be claimed earlier. Interest on such a loan cannot exceed the refinancing rate of the Central Bank and cannot change for five years. The principal amount is returned in one payment at the end of the term.

Later, Finance Minister Alexei Kudrin announced details of the allocation of money. The loan to Sberbank will be allocated directly from the Central Bank, and to VTB, Rosselkhozbank and others - from government funds through Vnesheconombank. In addition, at the expense of the budget, any commercial bank with an appropriate rating will be given the opportunity to receive a loan in the amount of 15% of the authorized capital, provided that 30% is provided

shareholders. Commercial banks can be granted credit all at once. A credit line will be opened for Sberbank and VTB (for this, as Kudrin explained, a law must be passed). The minister also promised that a decision would be made to increase the funds allocated to banks through auctions from the deposits of the Ministry of Finance.