The Pak Banker - - FRONT PAGE -

Rus­sian state de­fence com­pany Rostec will pro­vide ad­di­tional cap­i­tal to its sub­sidiary bank Novikom­bank due to reval­u­a­tion of loans to com­pa­nies that fell un­der Western sanc­tions, ac­cord­ing to a Rostec state­ment. Rostec, also un­der Western sanc­tions im­posed on Rus­sia for its in­volve­ment in the Ukraine cri­sis, would not dis­close how much money will be shifted to the bank, say­ing only that it will in­crease its share in the bank to "su­per-con­trol­ling."

Last week, Fitch rat­ing agency down­graded the bank's rat­ing to B- from B, cit­ing as­set qual­ity prob­lems and lack of ad­e­quate cap­i­tal sup­port from Rostec. Most of the bank's woes come from loans is­sued to the debt-laden air­line Transaeroo.

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