Expert Chaslau Koniukh
  • Biography
  • Analytics
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Market terminology
  • Stock Market
  • World exchanges
2019 dividends

Dividends for 2019 will be paid: application of Moscow stock exchange

21.12.2020
2 min read

Dividends for 2019: position of the Central Bank, the Ministry of Finance and the Moscow City Council

The Moscow Stock Exchange intends to pay dividends for 2019 on the previously specified dates. Their size was determined by the Supervisory Board. The final decision from the trading floor will come after the shareholders meeting. This intention runs counter to the recommendations made by the Central Bank of Russia before that.
In April, the country’s main regulator advised financial institutions to pay out dividends for the previous year only if there is a capital stock. Taking into account the medium-term perspective, the reserve funds should be sufficient to ensure the normal functioning of the organization.
Representatives of the Moscow Exchange argue the decision on payment of dividends by that they have the necessary quantity of the capital. At the same time, they took into account the worst scenarios of closing the trading floor before the end of the year, and still the exchange has enough capital to support working processes and core staff. Therefore, the institution sees no obstacle to stop the payment of dividends and undermine the trust of those who rely on the money. The last word remains with the shareholders, who must vote for this intention at the meeting.
In March, the Supervisory Board of the trading platform announced plans to allocate 18.1 billion rubles for dividends. This amount is 89% of the IFRS profit.

2019 dividends

Disputes over dividends have been going on for some time now. It all started when the Ministry of Finance announced that all companies and banks with state stakes should pay out these liabilities, spending 50% of their profits under IFRS. However, the Central Bank did not agree with this categorical position. It was noted here that state companies cannot fully comply with the formal budget plan and the payment should be considered on a case-by-case basis. When deciding to allocate funds for dividends, institutions should take into account development strategy, capital and prospects. In some cases, less investment is required, while in others it is more than the specified level, so it would be wrong to speak about 50% of the profit. The best option would be if the bank selected its own dividend policy, which is not detrimental to its functionality.
To this statement from the Central Bank, the Ministry of Finance said that state companies are obliged not only to pay dividends in the amount of at least half of the profit, but these funds should be repaid even if the institution suffers losses. In this case, the capital should be taken from the undistributed profit, which was received in previous years.
The view of the Ministry of Finance is explained by the risk to the budget, which may decrease by about 204 billion rubles of dividends, although 380 billion rubles were pledged.

Share
0
Previous Post The oil market continues its slow recovery Next Post Investment company Princeville Capital has invested in the online store Ozon

You Might Also Like

American Stock Exchange
World exchanges
American Stock Exchange: the history of the American Stock Exchange
14.06.2020
Russian stock exchange markets
World exchanges
How the Russian stock markets emerged and developed
24.07.2020
Hang Seng
World exchanges
Chinese technology corporations have entered the main index of Hang Seng Hong Kong Stock Exchange
30.01.2021
Saudi Aramco
World exchanges
Saudi Aramco goes on the stock exchange
22.09.2020
when the stock market goes down
World exchanges
What to do when the stock exchanges are falling: analyze the fall of the indexes
03.08.2020
Norwegian oil
World exchanges
How Norwegian oil helped the country become an ideal place to live
14.07.2020

Recent Posts

  • 1minimize risks
    Bank of Russia recommends the Moscow Exchange to minimize the risks of contracts with negative prices
    10.04.2021
  • 2Disney Plus
    Corporation analysts: prospects of Disney Plus streaming service
    09.04.2021
  • 3Tencent Company
    Tencent company pressed Facebook and became the leader of the social networks segment
    08.04.2021
  • 4financial trap
    The Chinese government can expect a financial trap
    07.04.2021
  • 5Ingvar Kamprad
    Ingvar Kamprad: biography of the founder of the famous IKEA store chain
    06.04.2021

Popular Posts

  • Dentsu Aegis Network: how the advertising market will change in 2020-2021 0
  • How the Frankfurt Exchange Deutsche Börse works 0
  • What is a clearing activity in the market and its advantages 0
  • Karl Persson: As heir of H&M managed to make the company famous worldwide 0

Social

Editor's Picks

Chaslau Koniukh

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

minimize risks
Bank of Russia recommends the Moscow Exchange to minimize the risks of contracts with negative prices
10.04.2021
Disney Plus
Corporation analysts: prospects of Disney Plus streaming service
09.04.2021
Tencent Company
Tencent company pressed Facebook and became the leader of the social networks segment
08.04.2021

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh is an international financial expert, a professional investor, an experienced analyst and a practicing trader. He advises European entrepreneurs; holds lectures on investment topics; is the author of scientific articles on work at the stock market.

Recent Posts

  • 1Caesars Entertainment
    Caesars Entertainment Company now owned by Eldorado Resorts
    11.04.2021
  • 2minimize risks
    Bank of Russia recommends the Moscow Exchange to minimize the risks of contracts with negative prices
    10.04.2021
  • 3Disney Plus
    Corporation analysts: prospects of Disney Plus streaming service
    09.04.2021
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Youtube
  • Instagram
  • Biography

Expert Chaslau Koniukh: brief biography and path of formation

Let’s Socialize