On results of inspection of financial standing of Novatsia Joint-stock Commercial Bank held by provisional administration

During the examination of financial standing of the credit institution Novatsia Joint-stock Commercial Bank (Public Joint-stock Company), further referred to as the credit institution, the provisional administration, acting from 23 January 2017 and appointed by Bank of Russia Order No. OD-112, dated 23 January 2017, due to the revocation of the banking licence, revealed operations, conducted by the credit institution’s former management, which bear the evidence of siphoning off of assets by, among other things, extending intentionally bad loans to borrowers with dubious solvency who are unable to meet their liabilities, as well as to corporate borrowers bearing the marks of shell companies. The resulting damage totalled in excess of 430 million rubles.

The provisional administration estimates the value of the Bank assets to total 1.1 billion rubles, vers. 1.8 billion rubles of its liabilities to creditors.

On 15 March 2017, the Court of Arbitration of the Republic of Adygera ruled to recognise the Bank as insolvent (bankrupt) and initiate bankruptcy proceedings. The State Corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on the operations conducted by the former management and owners of the credit institution which bear the evidence of criminal offence to the Ministry of Internal Affairs of the Russian Federation, the Investigative Committee of the Russian Federation and the Prosecutor General’s Office of the Russian Federation for consideration and procedural decision making.

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26.06.2017 00.00.00