Russia's central bank and finance ministry will deposit €1.5 billion with the State Development Bank, or VEB, for one year to finance the rescue of Globex bank, Interfax news agency quoted the head of VEB as saying today.
VEB chairman Vladimir Dmitriyev has previously said VEB would buy Globex, hit by the financial crisis, for "a symbolic amount".
"The funds will go toward providing the bank with financial support for stabilising its operations and unconditionally fulfilling its obligations before its clients and counterparties," VEB said in a statement.
Globex, which was hit by a bank run that caused it to lose 15 per cent of its deposits from this month's balance, is set to become the fourth bank among Russia's top 50 to be nationalised by the state amid the global financial crisis.
On Wednesday, Globex vice-president Emil Aliyev said the bank run had cost the bank 3.5 billion roubles ($99 million) since October 1st, with the bulk of the money withdrawn early.
Reuters