On application of bankruptcy prevention measures

The Bank of Russia took the decision to apply bankruptcy prevention measures to OJSC JSCB BTA-Kazan in collaboration with the state corporation Deposit Insurance Agency (the Agency) and approved the Plan for participation of the Agency in bankruptcy prevention.

The decision is aimed at reestablishing solvency of a large bank of the Republic of Tatarstan. In the next days, liquidity problems of OJSC JSCB BTA-Kazan are to be settled, the bank is to start regular functioning and all clients, including depositors, will be able to use its services.

In compliance with the Plan for financial rehabilitation (the Plan) of OJSC JSCB BTA-Kazan, starting 27 May 2014 the Agency takes the functions of provisional administration of the bank. The powers of shareholders of OJSC JSCB BTA-Kazan connected with participation in the authorised capital and the powers of executive bodies are suspended for the period of provisional administration activity.

The Plan provides for participation of Novaya Neftekhimiya LLC, one of the largest shareholders of OJSC JSICB Tatfondbank, in the measures for financial rehabilitation of OJSC JSCB BTA-Kazan as investor granting a loan in the amount of 1.8 billion roubles. The amount of authorised capital of OJSC JSCB BTA-Kazan is supposed to be decreased to 1 rouble resulting in current shareholders’ loss of control over the bank. Afterwards, OJSC JSCB BTA-Kazan is to be recapitalised from the own funds of Novaya Neftekhimiya LLC.

Furthermore, OJSC JSICB Tatfondbank is to grant OJSC JSCB BTA-Kazan a loan in the amount of 1.2 billion roubles from its own funds. In compliance with the participation plan the investor and OJSC JSICB Tatfondbank are to allocate the total of 3 billion roubles for financial rehabilitation of the bank.

In compliance with the Plan, as soon as the loans from Novaya Neftekhimiya LLC and OJSC JSICB Tatfondbank have been granted, the Bank of Russia is to grant the Agency a loan in the amount of 9.9 billion roubles to apply bankruptcy prevention measures for OJSC JSCB BTA-Kazan.

Implementation of the established plan will enable OJSC JSCB BTA-Kazan to provide uninterrupted client settlements and restore its financial standing.

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27.05.2014 00.00.00