VTB doesn’t extend liquidity loans to subsidiaries abroad

VTB doesn’t extend liquidity loans to its subsidiary banks abroad any more, taking its negative experience in Ukraine into account, told journalists VTB CEO Andrei Kostin

In November 2018 the National Bank of Ukraine admitted Russian VTB’s subsidiary bank’s insolvency and revoked its license in December. Kostin said, the bank wanted to leave Ukraine “in an orderly manner” and by the end of 2019 could pay 100 mln$ of corporate and private deposits, but they weren’t allowed to do that.

At a briefing of the VTB Capital investment forum “RUSSIA CALLING!” Kostin said Friday that several years ago the bank limited its approach to foreign markets and fully focused on the Russian market, but it didn’t close its offices abroad, as they had certain advantages.

All our banks work efficiently. After the negative experience in Ukraine we switched over to complete self-financing of the liquidity of our banks abroad”, he said.

"We no longer actively provide loans to increase the liquidity of banks, as we did before to avert political consequences and minimize losses”, the head of VTB added.