OREANDA-NEWS. The Board of Directors of JSC Russian Railways at their meeting on August 31, 2007 decided on monetary valuation of the shareholding interest in JSC TransCreditBank, which is to be contributed in payment for additional stock of JSC RZhD, and the offering price of additional stock of JSC RZhD was set.  Thus, the Company has taken all corporate actions prerequisite for the Government of Russia to decide on JSC RZhD’s additional stock issue to be paid for with TransCreditBank’s shares.

Earlier President of Russia V.V.Putin by his Decree, dated 15.02.2007, №178, ordered to contribute 75% government-owned interest in JSC TransCreditBank to the charter capital of JSC RZhD.  This decision fully meets interests of both companies and is in line with the global trend of establishment of holding structures, which comprise banks, pension funds, insurance companies and other entities supporting the core business.

TransCreditBank is the main financial partner of JSC Russian Railways and services most of RZhD’s entities and subsidiaries.  They post about 90% of their settlements through accounts with TransCreditBank.  Acting in the Company’s interests the Bank supports settlements of the Company, its branches and units, posts real-time payments, finances leasing programs targeting acquisition of rolling stock and railway equipment, finances vendors of JSC RZhD, implements card-based payment systems, provides a full range of banking services to employees of the rail, including custom-tailored consumer, mortgage and car lending programs, implements comprehensive servicing projects for employees and entities of the rail.

The Bank’s customer base includes nearly 1 mln employees of the railroad sector.