The State Corporation Deposit Insurance Agency appointed to perform functions of the provisional administration of International Bank of St. Petersburg; moratorium on meeting the bank’s creditor claims imposed

Following the unstable financial position of the St. Petersburg-based International Bank of St. Petersburg (Registration No. 197), further referred to as the Bank, and a threat to its creditors’ and depositors’ interests, by its Order No. OD-2668, dated 15.10.2018, the Bank of Russia assigned the State Corporation Deposit Insurance Agency the functions of the provisional administration to manage the Bank for a six-month period.

Shareholder powers related to participation in the authorised capital and the powers of the Bank’s governing bodies are suspended for the period of provisional administration activities.

The provisional administration’s priority task will be to specify the gap between the value of the Bank’s assets and liabilities.

At the same time, by its Order No. OD-2669, dated 15.10.2018, issued in pursuance of Article 189³⁸ of Federal Law No. 127-FZ, dated 26 October 2002, ‘On the Insolvency (Bankruptcy)’, the Bank of Russia imposed a three-month moratorium on meeting claims of the Bank’s creditors.

The Bank of Russia took the above decisions to protect the interests of the Bank’s creditors and depositors, help keep the situation in the credit institution under control and ensure its assets are protected.

International Bank of St. Petersburg 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 Federal Law No. 177-FZ, dated 23 December 2003, ‘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 the Bank’s depositors will start no later than 14 days since the moratorium imposition date.

The reference to the Press Service is mandatory if you intend to use this material.