OREANDA-NEWS. Deputy Chairman - Member of Management Board of VEB Sergey Vasilyev informed: "Supervisory Board at its regular meeting on 18 September 2013 discussed the Bank for Development target business model as well as measures necessary for its implementation. VEB was tasked to elaborate specific proposals including on recapitalization of the Bank for Development in cooperation with the Ministry of Economic Development and Ministry of Finance of the Russian Federation. Though the setting of specific deadlines seems premature we do not expect procrastination in either elaboration or approval of key approaches."

Sergey Vasilyev emphasized: "VEB is Russia's key development institution fulfilling the tasks of state significance. Its capitalization is viewed as a basis for further development of the Bank. Being provided certain capital at the outset we raised funding to a large extent at the market. Even though we abide by conservative leverage policy we realize that market funding is not unlimited.

Further expansion of VEB's key development activities requires its capitalization. According to our rather conservative forecast VEB's portfolio by 2020 might reach RUB 4.0 trillion as the need for our investments is quite significant in major sectors of economy, infrastructure and industry as well. The demand here is extremely high and there is hardly any other institution except VEB who could meet this challenge. Neither budget nor commercial banks could handle this."

Being the Bank for Development VEB provides financing to particular projects of strategic importance for Russian economy on non-market basis and at the same time is being provided respective funding on the same non-market basis for a significant part of the projects implemented.