On activity of OJSC Bank Zapadny

The provisional administration of OJSC Bank Zapadny appointed by Bank of Russia Order No. 766 dated 21 April 2014 due to the revocation of its banking licence, encountered an obstruction of its activity starting the first day of performing its functions. The management of OJSC Bank Zapandy avoided submitting assignment agreements, debt agreements and promissory note purchase agreements, as well as documents of title for real assets.

During the examination of the bank’s financial standing, the provisional administration revealed operations to assign (transfer) assets in the amount of 2.8 billion rubles and to sell a real estate property with the balance sheet value of 0.9 billion rubles in the run-up to the revocation of licence. The bank did not receive any payment for the assets sold.

The provisional administration revealed facts of assets withdrawal through the purchase of investment units of a closed-end unit investment fund at the price significantly exceeding the cost of the fund’s assets and through the extension of loans to entities with dubious creditworthiness.

According to the conclusions made by the provisional administration, the cost of assets of the bank does not exceed 14.3 billion rubles, while its liabilities amount to 25.7 billion rubles.

Under these circumstances the Bank of Russia filed an application to the Arbitration court of the city of Moscow on 19 May 2014 on recognising OJSC Bank Zapandy insolvent (bankrupt). The hearing of the case is scheduled for 7 October 2014.

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

The reference to the Press Service is mandatory if you intend to use this material.

02.10.2014 00.00.00