On results of inspection of financial standing of CB Razvitie LLC held by provisional administration

During the inspection of financial standing of CB Razvitie LLC, the provisional administration of the credit institution, appointed by Bank of Russia Order No. OD-3444, dated 10 October 2016, due to the revocation of its banking licence, revealed that the former management and owners might have withdrawn assets through lending to shell borrowers and borrowers incapable of honouring their liabilities in the total amount of 4 billion rubles.

In addition, the provisional administration revealed that liquid collateral on loan agreements in the amount of more than 2.8 billion rubles was withdrawn from the bank shortly before the licence revocation.

The provisional administration estimates that the bank’s assets do not exceed 2.7 billion rubles whereas its liabilities to creditors stand at more than 5.5 billion rubles, including more than 4.3 billion rubles of liabilities to individuals.

On 30 November 2016, the Arbitration Court of the Karachay-Cherkess ruled to recognise the bank as insolvent (bankrupt). The state corporation Deposit Insurance Agency was appointed as a receiver.

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

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27.01.2017 00.00.00