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  Thursday, May 26, 2022
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Russia's Central Bank and Finance Ministry are considering lending $2 billion
Russia's Central Bank and Finance Ministry are considering lending $2 billion to the national development bank, Vnesheconombank (VEB), to take over the cash-hit Globex bank, VEB said in a statement on Friday.

"The funds will be invested in the implementation of a program to provide it [Globex] with financial assistance with a view to stabilizing the bank's operations while allowing it to honor its commitments to clients and counterparties in full," the statement read.

The decision to buy up to 100% in Globex is expected to be approved by VEB's supervisory board.

Globex, a midsized bank with a significant client base, blocked its customers from withdrawing cash on Tuesday from deposit accounts for five days amid a global liquidity crisis.

Last Friday, the government pledged to give 75 billion rubles ($2.85 billion) to VEB to buy up "problem banks."

Globex is among Russia's 50 largest banks. As of October 14 the balance on its current and fixed-term deposit accounts was more than 20 billion rubles, a 15% drop on September.

Analysts have said problems with liquidity experienced by the Russian banking sector could trigger a wave of consolidations, and reduce the number of lending institutions in Russia by 30%.


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