MOSCOW (Reuters) - Russia’s FG Budushchee (FTRE.MM) said on Wednesday it was in talks to hand control to Riverstretch Trading & Investments (RTI), which has already taken on the private pension fund’s debt.
FG Budushchee, which manages pension funds worth more than 300 billion roubles (3.41 billion pounds) covering more than 5 million people, is now controlled by the family of businessman Boris Mints.
The pensions manager said this month that its debt worth 1.67 billion roubles had been transferred to Cyprus-registered RTI from Credit Bank of Moscow (CBM) (CBOM.MM).
FG Budushchee, which means “future” in Russian, reported a net loss of 15.8 billion roubles in 2017, hit by a write-off following the central bank’s bailout of Otkritie bank last year.
FG Budushchee was also a shareholder in Promsvyazbank, another large private bank bailed out by the central bank in 2017.
“The quality of assets held by FG Budushchee has significantly deteriorated over the last year, which was also due to the bailouts of Otkritie group of banks and Promsvyazbank,” Budushchee said in a statement.
It said it was in talks to transfer control to RTI, adding that this would represent a non-cash settlement of a debt held by O1 Group, another company held by the Mints family and which is the parent of FG Budushchee.
CBM, Russia’s sixth biggest bank by assets according to Interfax data, is controlled by Roman Avdeyev. He told Kommersant daily this year that he had hired RTI to deal with Mints’ debts to his bank.
FG Budushchee did not give further details about the ownership of RTI in its statement on Wednesday.
Reporting by Tatiana Voronova; Writing by Katya Golubkova; Editing by Edmund Blair