On results of inspection of financial standing of Bank Bogorodsky LLC by provisional administration

The provisional administration of Bank Bogorodsky LLC appointed by Bank of Russia Order No. OD-989, dated 24 March 2016, due to the revocation of its banking licence encountered an obstruction of its activity starting the first day of performing its functions.

In violation of Russian legislation Bank Bogorodsky LLC management failed to provide the provisional administration with original loan agreements worth about 41.7 million rubles.

Besides, the provisional administration detected in the course of examination of the credit institution’s financial standing operations carried out by the bank’s former management which bear the evidence of moving out assets through extending loans known to be unrecoverable to borrowers with dubious solvency.

According to estimates by the provisional administration, the asset value of Bank Bogorodsky LLC does not exceed 1.3 billion rubles, while its liabilities to creditors amount to 1.9 billion rubles.

On 30 May 2016, the Court of Arbitration of the Nizhny Novgorod Region took a decision to recognise Bank Bogorodsky LLC insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia has submitted the information on the financial transactions bearing the evidence of criminal offences conducted by the former management and owners of Bank Bogorodsky LLC 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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31.08.2016 00.00.00