Bank of Russia approves amendments to anti-bankruptcy plan for JSC Moscow Industrial bank

The Bank of Russia approved amendments to the Plan for the Bank of Russia’s Participation in Bankruptcy Prevention Measures for JSC Moscow Industrial bank (Reg. No. 912, hereinafter, the Bank).

According to these amendments, the Bank of Russia is to finance the recapitalisation of the Bank. The amount of the financing was estimated at 34.9 billion rubles so that the fair value of the Bank’s assets matches the amount of its liabilities.

Further operations with the Bank’s troubled and non-core assets will be recognised on its balance sheet. Thus, the said assets will not be transferred to the group of NB TRUST.

Furthermore, under the Bank’s financial resolution strategy, the Bank of Russia is to contribute 100% of the Bank’s shares at a value of one ruble per share to SC DIA to be subsequently transferred to the Russian Treasury pursuant to Federal Law No. 326-FZ ‘On Amending Articles 16 and 19 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’. The Bank is supposed to join Promsvyazbank PJSC no later than in May 2023 provided the Government of the Russian Federation makes a decision on the contribution of the JSC Moscow Industrial bank’s shares to the authorised capital of Promsvyazbank PJSC.

To prepare the Bank for the transfer to the Russian Treasury, representatives of the Bank of Russia and FBSC AMC Ltd. left the board of directors of JSC Moscow Industrial bank in December 2021.

JSC Moscow Industrial bank will continue to operate as normal and fulfil all its obligations to clients. The Bank of Russia’s earlier decision to guarantee the continuity of JSC Moscow Industrial bank remains in effect.

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20.05.2022 13.53.25