Russian banks need 200-300 billion rubles to increase capital — Ulyukayev

ST. PETERSBRUG, May 22. /ITAR-TASS/. Russian banks need to increase their capital by 200-300 billion rubles ($5.8-8.7 billion) to keep their operations stable, Economic Development Minister Alexei Ulyukayev said on Thursday.

“We believe that additional capitalization could total 200-300 billion rubles,” Ulyukayev said at the St. Petersburg International Economic Forum.

The requirement for additional money is explained by difficulties with foreign debt refinancing, the minister said.

“The Russian banks’ additional demand for credit resources should be accompanied by an increase of their capitalization. We consider different options like the enlargement of Russian banks’ capital through the transformation of earlier issued loans into Tier 1 capital,” Ulyukayev said.

The Economic Development Ministry has also proposed to recapitalize banks through a special issuance of government securities.