December 6, 2017 / 1:53 PM / in a year

Russian finance ministry wants back $1.4 bln of budget funds spent on troubled banks

MOSCOW, Dec 6 (Reuters) - The Russian finance ministry would like to get back 85 billion roubles ($1.4 billion) of budget funds the state spent on bolstering the capital of troubled banks, Deputy Finance Minister Alexei Moiseev said on Wednesday.

“We begrudge 85 billion (roubles), we want to have them back,” Moiseev said, referring to state funds used to prop up banks that are now being rescued by the central bank.

The Russian banking sector is under scrutiny after the central bank, which has been gradually shutting banks across Russia, bailed out two large lenders within a month.

In late August, it rescued Otkritie Bank, Russia’s largest private lender by assets at that time, in the biggest bailout so far. Less than a month later, it rescued B&N bank, Russia’s No.12 lender.

Otkritie, B&N and Genbank, a Crimea-based lender also rescued by the central bank earlier this year, had all received financial support through the state-run Deposit Insurance Agency before they were bailed out by the central bank.

Moiseev said the finance ministry was in talks with the Deposit Insurance Agency about getting the money back to the budget funds. He did not elaborate on ways to recover the money, or give a timeframe.

$1 = 59.0980 roubles Reporting by Darya Korsunskaya and Tatiana Voronova; Writing by Andrey Ostroukh; Editing by Mark Potter

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