Prime Minister Vladimir Putin said Thursday the government will put hundreds of billions of rubles into troubled state-owned banks to get credit flowing again, but ruled out partial nationalization of private lenders, according to AP. Putin said the government would inject 200 billion rubles ($5.5 billion) into state-backed lender VTB. Additionally, state-owned Vnesheconombank, which has spearheaded the government's anti-crisis efforts to shore up banks and the real economy, will get a 100 billion ruble ($2.8 billion) capital boost, and also could receive a further 100 billion rubles in subordinated loans, he said. «This could involve state participation in tier 1 capital,» Putin said during a Cabinet meeting in Moscow. «In other words, the state could increase its presence in these banks.» State-controlled Sberbank, the country's largest bank, also would receive help if necessary, said Putin. VTB is 77.5 percent-owned by the state, while VEB is 100 percent state-owned.
