B&N Bank has been selected to rehabilitate Rost Group’s banks, the Bank of Russia’s BoD decided so, approving amendments to the plan of the State Depositary Insurance Agency (DIA) to forestall bankruptcy of the group’s five lending institutions, the regulator said in a press release.
Using a CBR loan the agency will provide Rost Bank with financial aid in the form of a Rub 18.4 bln 10-year loan designed to cover the imbalance between the fair asset value and the book value of all the banks’ liabilities. At the same time, using the Bank of Russia’s credit facility the DIA will lend Rub 17.5 bln to B&N Bank for 6 years to maintain liquidity owing to capital uplift measures, the regulator’s materials run.
The group, apart from the namesake bank, comprises Bank Kedr, SKA-Bank, TverUniversalBank and Akkobank. The accomplishment of the approved plans will allow Rost Group’s banks “to restore their financial stability and ensure uninterruptible settlements with clients," the regulator said in a press release. Aggregate obligations to the households at the to-be-rehabilitated lenders total nearly Rub 70 bln.
B&N Bank participated in a DIA-held auction and offered the best terms of funding the rehabilitation of the banks. The participation plan stipulates that B&N Bank will gain control over Rost Group banks.
At present, B&N Bank, the beneficial owner of which is Mikail Shishkhanov, is busy rescuing Moscomprivatbank, a former subsidiary of Ukraine-based PrivatBank, which was renamed B&N Bank Credit Cards. As business daily Kommersant wrote, Tatfondbank, Alfa-Bank, Otkritie Group, Transcapitalbank, Vneshprombank and SMP Bank also bid to rehabilitate the group.
First reports about liquidity problems at Rost Group’s banks emerged in early November. In late November Rost Bank reported that it agreed upon its financial stability recovery plan with the Bank of Russia. In particular, Rost Bank’s shareholders and owners were going to add an additional Rub 2 bln to the capital in December, and the bank drew slightly over Rub 1 bln in mid-November.
