On results of inspection of financial standing of JSC Bulgar Bank held by provisional administration

The provisional administration to manage JSC Bulgar Bank appointed by Bank of Russia Order No. OD-74, dated 16 January 2017, following the revocation of its banking licence, in the course of analysing the bank’s credit portfolio has established facts of underestimated credit exposure on outstanding loans issued to the bank’s borrowers to the amount exceeding 307 million rubles.

Besides, in the course of examination of the bank’s financial standing, the provisional administration has established that the activities of the bank’s former management and owners had the signs of withdrawing assets totalling more than 179 million rubles, and has revealed a cash shortage in the bank’s operations office located in Moscow.

According to the estimate by the provisional administration, the bank’s assets do not exceed 531 million rubles, whereas its liabilities to creditors exceed 1.4 billion rubles.

On 2 March 2017, the Arbitration Court of the Yaroslavl Region recognised the bank as insolvent (bankrupt). The state corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on the financial transactions bearing the evidence of the criminal offence conducted by the former management and owners of the bank to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation for consideration and procedural decision making.

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