On the results of financial position estimation of open joint-stock company NBD made by provisional administration

Provisional administration to manage the open joint-stock company National Business Development Bank (OJSC NBDB) appointed by Bank of Russia Order No. OD-806, dated 24 April 2014, due to the revocation of the banking licence launched a financial standing estimation and revealed the facts of withdrawing of more than 13 billion rubles from the bank assets through issuing loans to companies with doubtful creditworthiness. Also, a part of the private individuals’ loan portfolio turned out to be ghost loans.

Besides, former management of the Bank failed to provide the provisional administration with the bill of exchange records and bills of exchange purchase and sale contracts worth 3.7 billion rubles.

The estimation made by the provisional administration revealed that the property value of the OJSC NBDB totaled 390.7 million rubles against liabilities in the amount of 8,501.2 million rubles. In this context, the Arbitration Court of Moscow took a decision on 26 June 2014 to declare the OJSC NBDB insolvent (bankrupt) and to open bankruptcy proceedings with the state corporation Deposit Insurance Agency approved as a receiver.

The information about financial operations with criminal offence indications carried out by the OJSC NBDB former management and owners was forwarded by the Bank of Russia to the Office of the Prosecutor General of the Russian Federation and the Russian Interior Ministry for investigation and taking appropriate procedural decisions.

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03.09.2014 00.00.00