On measures of financial rehabilitation of JSCB PERESVET
The Bank of Russia decided to launch financial rehabilitation measures against the Joint-stock Commercial Bank for Charity and Spiritual Development of Fatherland PERESVET, a joint-stock company, JSCB PERESVET (hereinafter, the Bank) using the bail-in mechanism.
On 19 April 2017, the Bank of Russia Board of Directors approved amendments to the Plan of Involvement of the State Corporation Deposit Insurance Agency (hereinafter, the Agency) in measures to prevent the Bank’s bankruptcy. Measures of financial rehabilitation are aimed at recovering the Bank’s financial stability, improving the quality of its assets, and bringing the Bank’s activities in line with the requirements set by the Bank of Russia. The bail-in procedure is an international practice and implies financial rehabilitation of a credit institution primarily at the expense of shareholders and creditors.
Over 70 creditors of the Bank expressed their readiness voluntarily to take part in financial rehabilitation through converting funds placed with the Bank in the amount of 69.7 billion rubles into
While assessing the financial position of the Bank, the Agency’s representatives jointly with the Bank of Russia established the mismatch between the fair value of assets and liabilities at 103.6 billion rubles. In order to implement the financial rehabilitation procedure the Agency has provided 66.7 billion rubles out of the Bank of Russia’s loan, including to cover the said mismatch and to maintain the Bank’s liquidity.
As major creditors suggested, VBRR Bank JSC was designated as an investor to implement bankruptcy-preventing measures against JSCB PERESVET.
The Plan of Involvement stipulates a possibility of concluding contracts with creditors, who have not so far been involved in the conversion of funds into the Bank’s subordinated bonds. The said conversion may be held after 24 April 2017 on terms similar to the bail-in terms. The detailed information will be posted on JSCB PERESVET website.
Reference information:
By its Order No. OD-3628, dated 21 October 2016, the Bank of Russia has appointed a provisional administration to manage the Bank in view of the latter’s failure to satisfy creditors’ monetary claims within the timeframe exceeding seven days from the deadline. Simultaneously, the Bank of Russia imposed a moratorium on satisfying claims of the Bank’s creditors by its Order No. OD-3629, dated 21 October 2016.
Representatives of the Bank of Russia and the state corporation Deposit Insurance Agency analysed the financial position of the Bank and, based on their results, on 3 February 2017, the Bank of Russia approved the Plan of Involvement of the Agency in measures to prevent the Bank’s bankruptcy. From 20 February 2017, the state corporation Deposit Insurance Agency has been vested with powers of a provisional administration to manage the Bank.
JSCB PERESVET is a participant in the deposit insurance system. Indemnities to the Bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds, but no more than 1.4 million rubles in total per a depositor, have been paid in full.
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19.04.2017 00.00.00