On results of inspection of financial standing of CB BFG-Credit LLC by provisional administration

The provisional administration of CB BFG-Credit LLC appointed by Bank of Russia Order No. OD-2391, dated 27 July 2016, following the revocation of its banking licence, in the course of examination of the bank’s financial standing has revealed operations conducted by the former management of the bank which had the evidence of siphoning off the bank’s assets, including by deliberately issuing loans, which would not be repaid, and bank guarantees to borrowers with dubious solvency, which had signs of shell companies and which were clearly unable to execute their obligations.

The examination also revealed operations executed by the bank immediately prior to its licence revocation. These operations pointed to the preferential satisfaction of claims of several creditors at the expense of other creditors.

According to estimates made by the provisional administration the value of the assets of CB BFG-Credit LLC does not exceed 3.4 billion rubles, while the value of its liabilities to creditors totals 50.9 billion rubles.

On 23 September 2016, the Moscow Arbitration Court decided to recognise CB BFG-Credit LLC insolvent (bankrupt) and initiate bankruptcy proceedings, with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia submitted information on financial operations bearing the evidence of criminal offence conducted by CB BFG-Credit LLC former management and owners to the Prosecutor General’s Office of the Russian Federation, the Russian Ministry of Internal Affairs and the Investigative Committee of the Russian Federation for consideration and procedural decision making.

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30.11.2016 00.00.00