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12:22 GMT +3 hours19 December 2014
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Russia's Vnesheconombank approves takeover of Globex

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The supervisory board of the Russian national development bank Vnesheconombank approved on Monday the purchase of 99% of shares in the struggling Globex bank.
MOSCOW, October 27 (RIA Novosti) - The supervisory board of the Russian national development bank Vnesheconombank approved on Monday the purchase of 99% of shares in the struggling Globex bank.

Vnesheconombank will also receive a $2 billion loan from the Central Bank for a bailout of Globex.

"Vnesheconombank has taken timely and necessary steps to bring Globex bank back to a regime of continued work. Globex's top-priority liabilities have been honored in full. The plan of the bank's bailout, which has been drafted, will enable the bank to restore within the shortest possible time its positions as a leading and reliable financial institution," the national development bank said.

Russian banks have been hit hard by the unfolding global financial squeeze sparked by the subprime mortgage crisis in the United States. The Russian government has recently taken unprecedented measures to pump billions of U.S. dollars into the domestic banking system to shore up its liquidity.

Globex bank is one of Russia's 50 largest banks. As of September 1, the value of the bank's deposits stood at 27.1 billion rubles ($990 million) and shrank to 23.5 billion rubles ($859 million) as of October 1 and further down to 20 billion rubles ($731 million) or 15% as of October 14.

Due to the liquidity shortage, Globex refused to return term deposits to clients before their expiry.