On the findings of the provisional administration-conducted financial assessment of LLC CB MIKO-BANK

The provisional administration to manage LLC CB MIKO-BANK (further — the Bank) as appointed by Bank of Russia Order No. OD-991, dated 24 March 2016, following banking licence revocation, in the course of its action to compose the Bank’s register of liabilities to depositors, found the facts of ad hoc records of the Bank’s liabilities to depositors to a total of over 0.8 billion rubles.

At the same time, the Bank executives provided documents which allegedly evidence the facts of Bank employee theft of unaccounted-for depositor funds. However, no fact-finding action was made to identify guilty persons and redress the damage done.

Concurrently, the provisional administration found that almost all of the Bank-extended loans, in excess of 3 billion rubles, are unrecoverable as they were extended to technical borrowers.

In the aggregate, the circumstances found suggest the facts of intended fraud in the Bank’s deposit attraction operations, as well as asset siphoning off, including placement of funds in inherently unrecoverable loans.

The current joint efforts of the Bank of Russia and the State Corporation Deposit Insurance are focused on recovery of missing data on open accounts (deposits) to enable inclusion of such data into the register of the Bank’s liabilities to depositors.

The provisional administration estimates the value of the Bank assets to be under 0.5 billion rubles, vers. 2.2 billion rubles of its liabilities to creditors. On 20 May 2016, the Arbitration Court of the City of Moscow recognised the Bank as insolvent (bankrupt) and initiated bankruptcy proceedings. The State Corporation Deposit Insurance Agency was approved to act as its bankruptcy supervisor.

The information on financial transactions indicative of criminal acts as carried out by the Bank’s former executives and owners was submitted by the Bank of Russia to the Office for Prosecutor General of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation, to be reviewed and to enable the appropriate procedural decisions to be made.

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23.06.2016 00.00.00