On appointing the provisional administration of PJSC Bank VVB and on imposing moratorium on meeting the bank’s creditor claims
Given the unstable financial standing of the Sevastopol-based credit institution Public Joint-stock Company Bank VVB or PJSC Bank VVB (Reg. No. 1093) the Bank of Russia appointed a provisional administration to manage the bank for a six-month period starting 12 December 2017 by its Order No. OD-3474, dated 12 December 2017.
The powers of shareholders connected with participation in the authorised capital and the powers of the managing bodies of PJSC Bank VVB are suspended for the period of provisional administration activities.
The primary objective of the provisional administration is to inspect the bank’s financial standing; this will allow the Bank of Russia to choose measures to settle the situation in the most appropriate manner.
At the same time, Bank of Russia Order No. OD-3473, dated 12 December 2017, imposed a three-month moratorium on meeting the PJSC Bank VVB’s creditor claims.
The Bank of Russia made the above decisions to protect interests of PJSC Bank VVB’s creditors and depositors, given its importance for the Republic of Crimea and the city of Sevastopol. They will help keep the situation in the credit institution under control and preserve its assets.
PJSC Bank VVB is a member of the deposit insurance system. The imposition of the moratorium on meeting the bank’s creditor claims by the Bank of Russia is an insured event as stipulated by the Federal Law ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor. The state corporation Deposit Insurance Agency will determine the procedure for paying indemnities.
Payments to PJSC Bank VVB depositors will start no later than 14 days since the date the moratorium has been imposed. Given the above, the bank’s depositors may receive their funds until the end of this year.
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