Russia’s central bank said it would provide a mid-size bank with up to 30 billion rubles ($US530 million) to stop it from going bankrupt, in the first bailout of its kind during the country’s ruble crisis.
The central bank’s Deposit Insurance Agency, responsible for managing crisis-hit lenders, would also take over supervision of Trust Bank as of Monday, it said in a statement.
The ruble has dropped about 45% against the dollar this year, suffering particularly steep falls early last week. President Vladimir Putin has declined to call it a crisis and said the currency would eventually rise again.
In all, Russia’s banking sector, under increasing pressure from a plummeting ruble and sanctions by the West over Ukraine, could get a capital boost of up to 1 trillion rubles under a new law being prepared by the government.
The central bank will soon choose a leading investor for bailing out Trust Bank, which is likely to be one of the country’s major banks, it said.
($US1 = 56.4600 rubles)
(Editing by Lidia Kelly and John Stonestreet)
More from Reuters:
- Greek Opposition Party Syriza Offices Cleared After Bomb Threat
- Top Bankers Need To Take Cyber Threat Seriously: BoE
- China Probes Senior Official For Corruption
- Oil Prices Likely To Rebound In Second Half Of 2015: Reuters Poll
- Exclusive: Can The Blood Of Ebola Survivors Create A Cure?
Business Insider Emails & Alerts
Site highlights each day to your inbox.