Effective April 1, 2016 the Bank of Russia has introduced a 3-month moratorium on the satisfaction of claims filed by the creditors of First Czech-Russian Bank (FCRB), the regulator's press service reported.
As the regulator noted, this measure was taken "as creditors' monetary claims were not satisfied during the period exceeding seven days since the date on which these claims become subject to satisfaction".
In accordance with the deposit insurance law the imposition of a moratorium on the satisfaction of claims of the bank's creditors is an insured event. Payments to FCRB deposit holders, including individual entrepreneurs, will start no later than two weeks after the day when the moratorium has been imposed. The manner in which insurance compensation is to be paid will be determined by the Deposit Insurance Agency (DIA).
To remind, in late March FCRB faced full restriction of operations through the Banking Electronic Speedy Payment (BESP) system. FCRB also began to keep records of those who want to withdraw over Rub 100,000 from their accounts. News broke on Tuesday, March 22, that the bank was partly limited in settlements through BESP. The lending institution said that their Client-Bank system for businesses went out of order, and payments are now accepted at its offices.
The media previously reported that FCRB operates with a number of orders and restrictions imposed by the Bank of Russia on retail deposits. According to Vedomosti's sources, the bank was recently inspected by the regulator that blamed the bank upon assessment of its borrowers.
FCRB's subsidiary bank in the Czech Republic (European Russian Bank, ERB) also faced restrictions imposed by the Czech National Bank. In early March the Czech regulator said on its website that it limited some of ERB's operations.
