The IMF has estimated the losses from support of EBV in 2% of Russia’s GDP

The international monetary Fund (IMF) estimates losses from the support Vneshekonombanka (VEB) to 2% of GDP over the next two years.

“Support for loss-making development Bank VEB, which does not attract deposits, not yet fully formalized, but can be up to 2% of GDP over the next two years” — quoted by RNS the July Fund report on the state of the Russian economy.

The total amount of subsidies to the year 2016 is 150 billion At the end of the first half of the year, the Corporation received 109.5 billion RUB As previously stated the Minister of economic development Alexei Ulyukayev, in 2017, the development Bank will need help from the budget in the amount of 260 billion rubles. Later, the Chairman of the Bank Sergey Gorkov has specified that the repayment of foreign debts of the Corporation in 2017 will need 240 billion rubles.

The IMF also recommended to improve the business model and VEB to strengthen supervision over it. “The web requires improving the business model and strengthen oversight. The mission recommends to build the Bank in the prudential supervision, to support, among other things, the Corporation’s approach to risk, capital management and liquidity and corporate control”, — the document says.

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