VTB excluded material losses because of the deal with Mozambique

As reported “Interfax” the press service of the VTB loan of $535 million provided by the state Fund Mozambique Mozambique Asset Management (MAM), $485 million the Bank gave the investors who are active in the region. The Bank stressed that VTB actively cooperates with the government and the balance of the debt excludes financial problems for the Bank.

On the eve of the Wall Street Journal reported that Mozambique may 23, Asset Management has not paid interest in the amount of $178 million in obligations to VTB, which were guaranteed by the state, and now the local government is negotiating debt restructuring. After a payment is missed, the rating Agency S&P Global Ratings downgraded the credit rating of Mozambique to CCC, which means a high probability of default.

“The loan MAM is $535 million, and the risk at this position in the amount of $485 million was transferred to the investors who are active in the region. The balance of the debt without any material losses for VTB. In addition, we are actively working with the government of Mozambique to stabilize the situation, and currently does not expect its deterioration”, — reported “Interfax” the press service of VTB.

According to sources, The Wall Street Journal, deals with Mozambique in relation to VTB and Credit Suisse began checking the British regulator. Banks are suspected of having violated the existing UK disclosure rules by not providing investors with information about the two loans worth more than $1 billion granted to state companies of Mozambique, with the participation of these banks, noted the WSJ.

In a press-service VTB RBC said they were not aware of any investigations in respect of a transaction in Mozambique. “We adhere to the principles of transparency and openness of business conduct and our interaction with regulators on transactions in Mozambique is no exception,” said the Bank.

The representative of VTB also said to “Interfax” that “some media” building materials “solely on speculation and not enough knowledgeable, not knowledgeable in the subject matter, the sources”.