Kostin admitted a number of companies unable to pay back restructured loans

VTB CEO Andrey Kostin doesn’t rule out that in late 2020 – early 2021 under the loan restructuring program a number of companies won’t be able to pay their loans back to the bank due to the pandemic even under new terms. That’s what he said in the interview to Russia-24 at the VTB Capital forum “RUSSIA CALLING!”.

“The Central Bank also mentioned that there may be companies unable to pay back their loans under the loan restructuring program. Restructuring itself is not a problem for banks, but payment default and arrears is a hard blow for banks. I see some lag here. That’s something we’ll have to deal with at the end of this year and in the beginning of the next” – Kostin said.

He added that as a means of combating this factor VTB ensures its security by rapidly increasing the reserves. “We have increased our reserves several times. This year alone we’ve saved up about 190 billion rubles and it gives us hope that regardless of the situation we’re going to take profit of about 250 billion rubles, if only we don’t face the next waves of the pandemic which will make the whole world take stern measures”, he said.