Novobanco is losing €29 million on Russian debt
Besides Russia, Novobanco also has small exposures to Belarus (€148,000) and Ukraine (€978,000), all adding up to about €20.74 million (it was €49.3 million at the end of last year).
Novobanco recorded a €29 million devaluation with its exposure to the debt of Russian companies, following the war in Ukraine that began six months ago, according to information gathered by ECO.
The banking institution had an exposure of €48 million to Russia at the end of 2021, of which €43 million was related to bonds of Russian companies (including from state-owned gas company Gazprom) and €5 million was from loans to customers. Meanwhile, with the start of the war in Ukraine, the debt securities became worth €14.1 million, according to the results for the first half of the year.
ECO knows that the bank did not dispose of any Russian securities in this period and that the devaluation of that exposure by €28.9 million was recorded, in part, through the constitution of impairments, while another part was already accounted for in the half-year results.
Observador reported in February that the bank tried to sell Gazprom debt, but ended up not finding a buyer, at least under conditions it considered satisfactory.
Besides Russia, Novobanco also has small exposures to Belarus (€148,000) and Ukraine (€978,000), all adding up to about €20.74 million (it was €49.3 million at the end of last year).
