On results of inspection of financial standing of JSCB Terra CJSC by provisional administration

The provisional administration of JSCB Terra CJSC appointed by Bank of Russia Order No. OD-2404, dated 28 July 2016, following the revocation of its banking licence detected in the course of examination of the bank’s financial standing that the former management of JSCB Terra CJSC conducted operations bearing the evidence of siphoning off the bank’s assets through providing loans to companies with dubious solvency totalling roughly 350 million rubles.

According to estimates made by the provisional administration the value of the assets of JSCB Terra CJSC does not exceed 201 million rubles, while the value of its liabilities to creditors totals 267 million rubles.

Under these circumstances, on 12 October 2016, the Moscow Arbitration Court decided to recognise JSCB Terra CJSC insolvent (bankrupt) and initiate bankruptcy proceedings, with the state corporation Deposit Insurance Agency appointed as a receiver.

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

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