The Bank of Russia’s board of directors approved amendments to DIA’s plan of action to forestall bankruptcy of National Bank Trust. A relevant press release was posted on the regulator’s website.
Bank FC Otkritie has been elected as the bank’s investor. In line with the plan, the rehabilitating bank will gain control over National Bank Trust and take it over until December 31, 2020.
Using CBR’s loan DIA will provide National Bank Trust with a 10-year loan of up to Rub 99 bln “to cover the imbalance between the fair asset value and the book value of the bank’s liabilities”. Meanwhile, the rehabilitating bank will be lent by the Bank of Russia with up to Rub 28 bln for six years for the purpose of maintaining National Bank Trust’s liquidity.
The Bank of Russia emphasized that the rehabilitation plan will provide uninterruptible service of the bank’s creditors and clients, including settlements and payments.
The Bank of Russia’s board of directors decided to rescue National Bank Trust on December 22, 2014. It was reported that as part of the rehabilitation DIA, using CBR’s loan, would provide National Bank Trust with financial aid of up to Rub 30 bln to maintain the troubled bank’s liquidity. The regulator specified that one of the country’s largest banks could be picked to help out National Bank Trust. National Bank Trust itself claimed that under the circumstances the rehabilitation decision “is the most favorable” for both its clients and the bank itself.
According to CBR deputy chairman Mikhail Sukhov, National Bank Trust failed to cope with an outflow of deposits and its liquidity was not enough to meet obligations to its clients. “The regulator deemed it important in principle under the circumstances to forestall insolvency of the bank, which is among Russia’s leading 30 banks in terms of assets and liabilities," he told Banki.ru.
Citing sources, business daily Vedomosti wrote earlier in the week that Bank FC Otkritie would be given nod to rescue National Bank Trust. The media also reported that Bank FC Otkritie could get Rub 99 bln to rehabilitate National Bank Trust.
