Avtovazbank buys 18.4 bln rbl overdue loan from Bank Sovetsky

MOSCOW, Jul 4 (PRIME) -- Russia’s Avtovazbank bought bad assets of Bank Sovetsky, the license of which was revoked on Tuesday, including an 18.4 billion ruble overdue loan to defunct Tatfondbank, Maxim Osadchy, director of the research department at Corporate Finance Bank, told PRIME on Wednesday.

The assets also include a 17.6 billion ruble credit portfolio that comprises loans, 80.1% of which are partially or completely overdue, he said.

The central bank launched a bailout of Bank Sovetsky, ranked 111th by assets as of June 1, through the Banking Sector Consolidation Fund in February, but it revoked the bank’s license on Wednesday as further bankruptcy prevention measures for the bank would become too costly without guaranteeing a positive result. The regulator also plans to transfer part of assets and liabilities of Bank Sovetsky to another bank that will continue servicing Sovetsky’s clients.

(63.2194 rubles – U.S. $1)

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