Raiffeisen International may sale the banks in Russia and Ukraine

Raiffeisen International may sale the banks in Russia and Ukraine

BankerRaiffeisen International Bank Holding AG may sell units in Russia and Ukraine in the event that the financial company had to strengthen its capital base and reserves with which to cover possible losses from bad loans to its subsidiaries. This forward Moskow News, quoted the Chairman of Raiffeisen International Christian Conrad, the Austrian group that is ready to give up control over their Russian and Ukrainian banks. Raiffeisen International is one of the largest foreign banks in Russia and owner of Raiffeisen Russia in Russia and Raiffeisen Bank Aval in Ukraine. According to Christian Conrad final decision will depend on whether and how much will have to increase the reserves of the subsidiaries of the Bank’s bad loans. By Raiffeisen International also stated that there are several possible scenarios for the development of the group in the future, one provides its teams in Russia and Ukraine to be sold through initial public offering (IPO). In February, Raiffeisen Zentralbank Osterreich, which is one of the largest cooperative banks in Austria and Raiffeisen International announced plans for a possible merger. Raiffeisen International is a public company in which 70% of capital held by Raiffeisen Zentralbank, the rest are traded freely within the Austrian Stock Exchange. The main market is Raiffeisen International Central and Eastern Europe, the bank is represented in 17 countries in the region.
Its Russian branch is one of the most important because it generates about 50% of its profits. Its share fell to 33% last year and the assets of Raiffeisen Russia decreased by 22% over 2008 to 11.68 million. Unaudited results for Raiffeisen International in 2009 showed that because of bad loans and deteriorating economic situation in Central and Eastern Europe for 2009 profit has contracted with goals 78% of the results of the previous year.