Chapter FSFR: In Russia, the fund may be "bad assets"

26.02.2009

Head of FSFR Vladimir Milovidov said that now the possibility of establishing a fund "bad assets" to the default of bonds. It is expected that this fund will help "clean" balance sheets and portfolio managers, said Reuters.

Milovidov said that while the idea was under discussion, however, already clear that the legal possibility to create this type of fund, there is a mixed investment fund or the fund for qualified investors. At the same time yet unclear what the bond will default to a closed PIF with the Federal Financial Markets Service, said agency. According to the head of service, you need to merge the default bonds to the pool and clean balance sheets and PIFov NPFov.

Milovidov believes that in this way will help to clear the market and, if the fund will be created to assist in raising money in the state. He also noted that after the establishment of a fund management company and the emergence of FSFR ready to present the fund in public authorities, to try to restructure the debt, but to start should try to evaluate this debt.

"Together with the National League of Governors and the Ministry of Economic Development, we think about the issue of bonds default - what action we might take to clear balance sheets, asset trustees, including the possibility of restructuring with gosuchastiem", - quotes Reuters the words Milovidov. Chapter FSFR stressed that the establishment of a fund bad assets - is not the only possible way to solve the problem.