On results of inspection of financial standing of OJSC Bank Narodniy Credit held by provisional administration

During the examination of financial standing of the credit institution, the provisional administration of OJSC Bank Narodniy Credit appointed by Bank of Russia Order No. OD-2782, dated 9 October 2014, due to the revocation of its banking licence, revealed that the value of assets of OJSC Bank Narodniy Credit did not exceed 14,121 million rubles, while its liabilities to creditors amounted to 26,854.8 million rubles.

The main reason for insufficiency of the bank’s assets to fully meet the creditors’ claims is the revealed facts of asset diverting through the extension of deliberately bad loans in the total amount of 10.2 billion rubles, purchase of non-liquid promissory notes in the amount of 1.8 billion rubles from the organisations not located at the addresses indicated in the respective agreements, and the sale of the bank’s property in the amount of 0.2 billion rubles.

Under these circumstances, on 3 December 2014, the Arbitration Court of the city of Moscow adjudicated to recognise OJSC Bank Narodniy Credit as insolvent (bankrupt) and to initiate bankruptcy proceedings. The state corporation Deposit Insurance Agency was appointed as a receiver.

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 Narodniy Credit 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.

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09.02.2015 00.00.00