Russian Ministry of Finance will waste 800 billion rubles to save banks

Ordinary Russian taxpayers will have to pay for the problems of the oligarchs' banks.   
21.09.2017
Origin source
The Russian Ministry of Finance in a fire order pours hundreds of billions of rubles from the budget to the banking system after three banks at once from the top 15 - Otkrytie and Binbank - went to the bottom, surrendered to the Central Bank and were de facto nationalized.

On Tuesday, the Treasury of the RF placed in banks on deposits 300 billion rubles for 42 days at an average rate of 8.17% per annum. Of these, 150 billion rubles fell on the prolongation of investments last month. The remaining $ 150 billion is new money and a net inflow into the banking system, follows from the agency's operational statistics.

On Wednesday, another, unscheduled auction for 250 billion rubles. Demand (436 billion rubles) almost double the supply, applications filed by five banks. But money, like on Tuesday, went to only two of them - for 84 days at 8.25% per annum.

On Thursday, one placement was announced. The Treasury will again offer the banks budget money - this time, 200 billion rubles with a period of 124 days.

Another 202 billion rubles were received by banks on Monday-Wednesday through repo transactions with the Ministry of Finance, pledging the federal loan bonds they had on their balance sheets.

Total since the beginning of the week from the federal budget, the banking system received 602 billion rubles, and if the demand continues at an auction on Thursday, the total amount of injections will exceed 800 billion rubles.

As a rule, the Ministry of Finance's deposit auctions are held once a week, at the same time they were held at once three. "It is likely that the growth of debt on deposits of the Treasury is directly or indirectly connected with the bank" Discovery ", - says analyst of FC Uralsib Irina Lebedeva.

In July-August, for the once-largest private bank of the Russian Federation, the Central Bank "printed" 1.062 trillion rubles, which were issued to it in the form of repo loans to cover the outflow of corporate customers and private investors, who took in total more than a third of all funds from accounts.

On Wednesday, judging by the Central Bank statistics, Otkrytie returned half of the amount - almost 500 billion rubles. Infusions from the budget will replace this money, says Lebedeva.

"It is possible that the funds were attracted by banks that increased the volume of lending" Discovery "in the interbank market," she explains: after the bank came under the control of the Central Bank, it was again possible to open limits.

"Opening" with the state's money can not formally work: the agency ACRA in June appropriated it too low rating, after which the state structures began to close accounts, which eventually became the last straw before the collapse.

In August, its capital collapsed almost twice - from 270.8 to 158 billion rubles, according to reports on the Central Bank's website. In reality, however, there is no capital at all - it was written off completely, said Mikhail Zadornov, who headed the "Discovery" on Wednesday. According to him, the Central Bank opened a credit line for the bank for a trillion rubles. The full "recovery" of the "Discovery" will take 3-4 years, Zadornov said.