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Russia's VTB to repay $6 bln in foreign debt in 2009

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MOSCOW, January 22 (RIA Novosti) - VTB, Russia's second-largest bank, said on Thursday it would fully repay its foreign liabilities, worth $6 billion, in 2009 without restructuring them.

"Our debt, which we must repay in 2009, is $6 billion. There are no plans to restructure this debt and we plan to repay it," Nikolai Tsekhmosky, VTB financial director, said.

At the same time, Tsekhomsky said VTB could again turn to Russia's state-controlled national development bank, Vnesheconombank, for a loan to refinance its current-year foreign liabilities.

"We'll seek to use various options," Tsekhomsky said.

VTB is also not ruling out the possibility of fourth-quarter losses and adjustments in its net profit for the whole of 2008, Tsekhomsky said.

VTB posted on Thursday a third quarter loss of $363 million, largely resulting from the management of the securities portfolio and larger provisions for potential losses. The bank also announced that its net profit calculated according to International Financial Reporting Standards fell 70% year-on-year in January-September to $316 million.

Tsekhomsky said the bank saw a deterioration of the economic situation in Russia in the fourth quarter compared with the third quarter and expected the continuation of negative trends in the first half of 2009.

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