The Leningrad region is preparing to buy a blocking stake in RUSCOBANK (Leningrad region). Relevant norm-setting acts will be published by governor Valery Serdyukov and the region’s legislature. As a result of new share issue, registered on October 31, the bank’s equity capital will rise almost 100 times to R500 million. Shares will be floated at par value. After the issue, the region will own 25% plus one share in the bank. The bank and the region agreed on cooperation in December last year. The bank promised to provide credits to regional enterprises and services to households and to expand the branch network. RUSCOBANK branches operate in Gatchina and Kirovsk. The bank also maintains 15 additional offices and operating cash desks in those regions. In the summer, the bank was re-registered in Vsevolozhsk and changed the organizational form from closed-end to open-end joint-stock company.
Source: VEDOMOSTI, November 26, 2007
