The Bank of Russia decided to commence measures to rehabilitate Baltiyskiy Bank with the participation of the State Depositary Insurance Agency (DIA), the regulator’s press service reported on Wednesday. Furthermore, DIA’s plan to forestall the lending institution’s bankruptcy was approved.
Specifically, the Bank of Russia would lend DIA up to Rub 10 bln for priority purposes to manage Baltiyskiy Bank’s liquidity. DIA will hold a tender in the next few days to select an investor that will act to rehabilitate the lending institution.
As noted in the press release, the decision on the bank’s rehabilitation was adopted after DIA assessed the bank’s financial standing and aims to safeguard the interests of the bank’s clients, deposit holders and creditors, and also to restore its firm financial standing. The regulator emphasized that presently Baltiyskiy Bank continues to operate as usual, providing a full range of banking services to its clients and deposit holders.
As of August 20, 2014 the State Depositary Insurance Agency (DIA) has been in charge of the bank’s temporary administration. Meanwhile, the powers and authority of the bank’s shareholders, which relate to the participation in the charter capital, and those of the governing bodies were suspended.
The media previously reported that the Bank of Russia mulls rehabilitating Baltiyskiy Bank, while DIA, at the regulator’s request, is checking the lending institution. The bank itself said that there are no formal reasons for rehabilitation, but “recent unconfirmed rumors about the prospects of rehabilitation are probably spread by those interested in this scenario”.
