On results of inspection of financial standing of JSC JSCB VEK by provisional administration

The provisional administration of JSC JSCB VEK appointed by Bank of Russia Order No. OD-1478, dated 12 May 2016, following revocation of its banking licence established that, prior to the licence revocation and emergence of problems with solvency, the former management and owners of JSC JSCB VEK had executed several transactions to assign assets to entities affiliated with the bank. Those transactions had indications of moving out assets and preferential satisfaction of claims of several creditors to the total amount exceeding 1.3 billion rubles.

Besides, the provisional administration established that the bank had made a wrongful estimate of credit risk exposure to the total amount exceeding 4 billion rubles due to improper debt servicing by borrowers, among other things, and also certain indications showing the borrowers’ potential inability to meet their credit obligations.

According to estimates by the provisional administration, the asset value of JSC JSCB VEK does not exceed 2.1 billion rubles, whereas its liabilities to creditors amount to 4.3 billion rubles.

On 22 August 2016, the Arbitration Court of the city of Moscow took a decision to recognise JSC JSCB VEK insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia has submitted the information on the financial transactions bearing the evidence of criminal offences conducted by the former management and owners of JSC JSCB VEK 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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14.10.2016 00.00.00