On measures aimed at improving financial stability of Promsvyazbank PJSC
The Bank of Russia approved amendments to the plan of its participation in bankruptcy prevention measures for Public Joint Stock Company Promsvyazbank, further referred to as the Bank (Reg. No. 3251); this plan is further referred to as the Participation Plan. The amendments provide for the involvement of the State Corporation Deposit Insurance Agency (further referred to as the Agency) as the investor in the bankruptcy prevention measures for the Bank and its recapitalisation.
Once the Agency buys an additional issue of the Bank’s ordinary certified shares to the value of 113.4 billion rubles, its total shareholding in the Bank will rise to 99.9% (ordinary shares). The Participation Plan also suggests that the Agency should offer the Bank its financial assistance, for which the Agency will use assets received from the Bank of Russia as an asset contribution.
The Bank of Russia’s asset contribution to the Agency and the Agency’s participation in the authorised capital of the Bank are in keeping with Federal Law No.
It is intended that the Bank should sell its toxic assets to complete its financial resolution.
These measures will make the Bank compliant with its individual capital adequacy requirements, as well as capital conservation and systemic buffers.
The Bank will return the funds previously provided by the Bank of Russia as liquidity before the end of 2018.
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