November 19, 2019 / 11:34 AM / 3 months ago

Russia's VTB believes Mechel can service its debt -CEO

MOSCOW, Nov 19 (Reuters) - Russian state bank VTB, one of the two key lenders to steel and coal producer Mechel , believes that the miner can service its debts, VTB Chief Executive Andrey Kostin told Reuters.

Mechel, which has agreed on a repayment schedule with Russian banks several years ago, has again asked banks this year, including VTB, to push back debt payments to 2024-2026 from 2020-2022.

Kostin said that Mechel’s new repayment schedule is yet to be agreed but he believed that the miner would be able to service its debts.

“We said this from the very beginning: we don’t want to manage Mechel. Looking into the future, Mechel is quite an effective company,” Kostin said.

VTB also holds a 22% stake in En+ Group, after the bank became part of the deal helping En+ averting U.S. sanctions put on Oleg Deripaska, who controlled the company, last year. The sanctions were lifted earlier this year.

Kostin said that VTB may consider selling its stake in En+ once the company’s shares rise from $9 per share, without specifying by how much.

$1 = 63.8550 roubles Reporting by Tatiana Voronova and Katya Golubkova, editing by Louise Heavens

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