RBC. The Moscow Arbitration Court (MAC) upheld a claim filed by the Central Bank of Russia represented by the Moscow Chief Territorial Directorate of the Bank of Russia seeking to declare Eurasia-Center insolvent (bankrupt), the Deposit Insurance Agency (DIA), which was appointed the lending institution’s receiver, said in a press release.
Eurasia-Center’s banking license was cancelled by the CBR order on October 8, 2008. According to the PR department of CBR, the monetary authority decided to strip the lender of its license because to its failure to comply with federal laws that regulate banking activities, CBR statutory acts, identified instances when unreliable financial statements were presented and the bank’s inability to meet monetary claims of its creditors.
Following the loss of liquidity Eurasia-Center failed to timely make payments on client accounts and also violated set requirements for mandatory reserves. In addition, the lending institution provided the Bank of Russia with unreliable financials concealing reasons for measures to be taken to prevent its insolvency (bankruptcy). The press release said the bank’s executives and shareholders took no required steps to restore the lender’s financial standing or eliminate reasons obliging CBR to cancel the license.
Eurasia-Center is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by the Federal Law “On Insuring Private Deposits Held with Banks of the Russian Federation”.
