Gref called his worst nightmare return to the government :: Business :: RBC

The head of Sberbank German Gref said that he did not consider it possible to return to the government. According to him, after ten years, he does not see himself in Sberbank

Herman Gref

(Photo: Eugene Razumny / Vedomosti / TASS)

Answering a question from the TASS agency, how does he see his worst nightmare, Gref replied: “Honestly? I am returning to the government. ” According to him, after ten years, he does not intend to work either in Sberbank, or in any other large company.

“In addition to working at the bank, there was another happy period in my life – teaching at the university. Maybe I’ll be back in the field of education. I’m interested in technology, venture capital investments, ”said Gref.

Commenting on the work of the cabinet in the context of the coronavirus pandemic, Gref compared it with what happened in 1998. “The government cannot be envied, if only for the reason that in the second week of its existence, he got the coronavirus. One can only compare this with the default of 1998, which occurred shortly after the arrival of Sergei Kiriyenko in the White House, ”said the head of Sberbank.

Gref predicted a sharp ruble appreciation by the end of the year

Photo: Stoyan Vasev / TASS

According to Gref, in the midst of quarantine, the Cabinet of Ministers “worked, without exaggeration, 20 hours a day” in search of solutions to the situation.

“No one expected such stress. The worst thing at that moment is inaction. He was absent. A series of actions may have turned out to be vain and incorrect, as we understand with a hind mind, but then it seemed that these were absolutely correct reactions, ”Gref said.

He appreciated the head of Sberbank and the actions of the Central Bank, which, according to him, “worked very well.” “The necessary steps were taken in time, which allowed us to untie our hands a bit and support our customers. We carried out a gigantic restructuring as soon as possible, renewed as many loans in a week as in the whole of 2019 – more than a trillion rubles for legal entities, ”Gref said.

In 2000-2007, German Gref headed the Ministry of Economic Development and Trade. Prior to that, he worked in various positions in the government of the country and the administration of St. Petersburg.


Gref commented on the “divorce” of Sberbank and Yandex :: Economy :: RBC

Photo: Konstantin Kokoshkin / Global Look Press

Sberbank is not “getting a divorce” from Yandex, but there is a need to restructure their joint business. This was stated by the head of the bank German Gref in an interview with TASS.

“We have no divorce. It’s about restructuring our joint business. We didn’t share anything, ”Gref explained.

He praised the development of joint projects with Yandex, noting the growth of the Yandex.Market service during the coronavirus epidemic. At the same time, Gref confirmed that there is competition between the ecosystems of Sberbank and Yandex, which creates problems.

“Ecosystems are highly competitive. This creates complexity. There was an objective need to think about how to get out of the situation, ”said the head of Sberbank. He specified that a mutually beneficial solution was found over the past year.


One of the pioneers of the US oil shale industry declared bankruptcy :: Business :: RBC

Chesapeake Energy shale oil producer owes $ 7 billion. Bloomberg said earlier that control of the company could go to one of the lenders.

Chesapeake Energy, considered one of the pioneers in the US oil shale industry, has filed for bankruptcy, according to the corporation’s website.

“The company has voluntarily filed for Chapter 11 defense with the United States Southern Texas Bankruptcy Court to facilitate a comprehensive restructuring of the balance sheet,” the statement said.

The company’s debt amounted to about $ 7 billion. Under an agreement with creditors, Chesapeake Energy will receive a loan of $ 925 million. In addition, lenders and holders of secured bills will allocate $ 600 million to it.

The flagship of the US oil shale industry pledged almost all assets on a loan

According to the corporation’s report, in the first quarter of 2020, Chesapeake Energy’s net loss was $ 8.3 billion, and its liquidity was $ 82 million.


Friedman the company to increase its stake in the largest mobile operator of Turkey :: Business :: RBC

Photo: Sedat Suna / EPA / TASS

The owners of Turkcell Holding, which owns 51% shares of the largest Telecom operator in Turkey, Turkcell, agreed to restructure the ownership structure in which the proportion of LetterOne Mikhail Fridman, German Khan and Alexei Kuzmichev, the operator will increase to 24.8%. This is stated in received by RBC release Swedish Teila and the message of Fund of national well-being of Turkey.

Before the transaction the Swedish TeliaSonera owned a share in more than 47% in Turkcell Holding. Share of 52.91% owned by Çukurova Telecom in which shares owned by Turkish Çukurova (51%) and “alpha-Finance” (49% through the “Alfa-Telecom”).

Now the Swedish company Telia sells its stake in 47.1% of Turkcell Holding $530 million This corresponded to a share 24,02% in the operator. Telia completes the withdrawal from participation in the company. Allison Kirkby, President and CEO of Telia, in the release called the decision “a final puzzle about leaving Turkey.”Now the company finally focuses on work in the Nordic countries and the Baltic States.

A joint venture of Turkcell Holding virtually ceases to exist. LetterOne by restructuring its stake in Turkcell Holding receives a direct share of ownership in Turkcell in the amount of 24.8%. Another 26.2 percent will be owned by national welfare Fund of Turkey, the remaining shares are in free float.

RBC sent a request to LetterOne.


One billion euros released for companies on the verge of bankruptcy

To help the treasury of SMEs and mid-caps in great difficulty, the economic and social development fund will be matched up to one billion euros, against 75 million currently.

The Ministry of Economy and Finance in Paris on April 8.
The Ministry of Economy and Finance in Paris on April 8. BERTRAND GUAY / AFP

The government has decided to give massive support to companies on the verge of bankruptcy or already subject to collective proceedings. The economic and social development fund (FDES), which provides loans to companies in difficulty followed by Bercy, saw its budget drop from 75 million euros to… one billion this year. “We do not refrain from raising it again if necessary, even if we have had margins with this first increase”, they say to Bercy.

This effort, envisaged from the first days of containment, was necessary. Companies in poor financial form (rated above 5+ at the Banque de France) and those in collective proceedings (safeguard, recovery, compulsory liquidation) are not eligible for new loans guaranteed by the State (PGE), in under European rules. And the solidarity fund is only intended for very small businesses. Another tool was needed for the mass of companies on the wire. “The government is committed to ensuring that no society

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Financial managers for the state of emergency are in demand like never before

Frankfurt For a good decade, they hardly had anything to do: Experts for the restructuring of companies in distress had become almost superfluous in most economic sectors in the golden economic times with loose credit terms and steady growth.

One of the most experienced is Ralf Moldenhauer, senior partner at BCG. He believes that pragmatic financing solutions are needed first. These are, for example, simple loan extensions or better use of existing credit lines. All classical instruments would be required. “Currently, the main focus is on measures to secure and release liquidity. In six to eight weeks, it will be more the measures that improve results, ”says Moldenhauer.

Financial institutions provide liquidity both by granting loans at their own risk and by coordinating government aid offers. “The focus of the activities is therefore clearly in the area of ​​financing. The investment bankers’ business with IPOs and bond issues, on the other hand, is likely to decline significantly for the time being, ”says Robert Urtheil, managing director and financial services expert at the international consulting firm Alix Partners.

Emergency sales of companies and parts of the group

There will also be profound changes in investment banking. Distressed companies and parts of the group are sold as part of mergers and acquisitions (M&A) in emergency sales. “It can be assumed that distressed M&A and firesales will be more important.

Because it will not be possible to ‘drag through’ non-performing subsidiaries and participations due to the limited financial resources, ”said the BCG expert. In addition, the measures currently underway by politicians are an important part of financing solutions.

This week, the federal government has launched an unprecedented aid package to support families, tenants, employees, the self-employed and companies. The Bundestag and Bundesrat approved several large protective shields and extensive changes to the law. With a supplementary budget of 156 billion euros, the federal government wants to mitigate the economic downturn.

The corona virus has pushed the global economy into a deep recession. Jan Hatzius, chief economist of Goldman Sachs, expects the gross national product to drop around one percent worldwide. “That would be stronger than in the year after the global financial crisis,” analyzes the expert. For him, the extent of this “sudden stop” that the world economy suffers is more apparent when looking at the quarterly comparisons. It shows that it is not just a global recession.

Based on hard data for China in January and February, Goldman Sachs expects the national product to plunge 42 percent year-over-year. In the United States, the bank reports a 24 percent slump in the second quarter in the United States. That would be two and a half times stronger than in the worst year since World War II.

Consolidation will accelerate in the future

“It is likely that in the second or third quarter it will be easier to assess how the pandemic will affect the economy and thus the goods and services produced, i.e. the social product, and how quickly a recovery will take place,” says Tibor Kossa, Co- Head of M&A for the German market at Goldman Sachs.

Regardless, the consequences of the pandemic would certainly accelerate consolidation across industries. The crisis is also likely to act as an accelerator for a realignment of companies where the restructuring has not yet progressed so far.

This could then again be particularly attractive for activists who will use the low valuations as soon as the environment has stabilized. Emergency capital increases, such as those seen in the banking sector in the 2008/2009 financial crisis, are currently not pending.

A long-term freeze of the companies – with the exception of certain industries such as air transport or tourism – is not possible according to the BCG analysis. “It is more likely that, after a shock and the short-term survival measures, the companies will concentrate on restructuring their business models sustainably,” says Moldenhauer.

Specialists for cash management or short-term cost management are required for the short-term measures mentioned. Alix Partners consultant Urtheil observes that the continuous monitoring and control of business capital is in the foreground alongside securing new sources of finance.

High ratings are over

In addition to the classic restructuring experts, there will be a clear need for employment lawyers and aid experts. The prices of companies would very likely also fall. “Surely no strong M&A activity is expected in the short term over the next four to eight weeks,” says Moldenhauer. The distressed M&A volume will increase.

However, the course is set for success afterwards in the crises. “The last financial crisis has shown that future market leaders will emerge in such phases. The exploration of strategic opportunities that arise from such disruptions should not be neglected, especially in crisis mode, ”says consultant Urtheil.

For example, transactions that were based on an exchange of shares made sense, especially if the share prices of companies developed similarly, according to Goldman.

More: M&A expert: “Reversing purchases because of Covid-19 is difficult”