July 6, 2010 / 5:23 AM / 10 years ago

Russia's IIB restructures $1 bln debt to cbank -reports

MOSCOW, July 6 (Reuters) - Russia’s International Industrial Bank (IIB) restructured 32 billion rouble ($1 billion) debt to the central bank, easing concerns on its ability to repay a 200 million euro Eurobond, business papers reported on Tuesday.

Industrial magnate Sergei Pugachev, the bank’s controlling shareholder, pledged his stakes in two shipyards as collateral for the central bank’s loans, and may secure an additional $400-600 million in loans from state-controlled lender VTB (VTBR.MM), Vedomosti reported, citing banking sources.

“The loan (to the c.bank) has been rescheduled to the middle of January 2011, the bank should pledge collateral in two weeks,” a source close to the central bank told Kommersant, another business daily.

Reuters could not reach IIB for immediate comment.

IIB [IIBNK.UL], also known as MezhPromBank, is ranked among Russia’s top 30 in terms of assets, but the main part of its business is connected to Pugachev’s shipbuilding-to-mining empire.

The bank needs to repay the Eurobond on July 6 and a source close to the bank has earlier said it plans to pay the debt from own funds [ID:nLDE65F1I6] ($1=31.17 Rouble) (Reporting by Dmitry Sergeyev; Editing by Anshuman Daga)

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