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17 Oct, 2008 06:57

VEB steps in to buy Globex Bank

VEB steps in to buy Globex Bank

In further fallout from the credit crunch engulfing the Russian banking world, Globex bank joined Kit Finance and Sviaz Bank as the latest Russian bank to be taken over by a state owned institution, with VEB chairman Vladimir Dmitriyev confirming that the

The news comes just days after reports of a run on Globex, which was believed to have temporarily suspended early withdrawals from term deposit accounts.

Disclosing that VEB will buy Globex for 5000 rubles, and that the buyout would enable Globex to honour its commitments without disruption to the financial system, Vladimir Dmitriyev announced,

“The government and Central Bank have agreed to us buying Globex for a symbolic amount. Just as we did with Sviaz Bank, we'll be taking the whole bank and start to help it out, partly with a deposit that the Central Bank will make with us,”