Cbanker says Promsvyazbank bailout fully completed

ST. PETERSBURG, May 24 (PRIME) -- The bailout of Russia’s Promsvyazbank has been fully completed, the new executive board can be formed in June, Central Bank Deputy Chairman Vasily Pozdyshev said at the St. Petersburg International Economic Forum on Thursday.

“The interim administration is still working in the bank. We will wait for the government to form new permanent management bodies. According to our estimate, it will happen in June. The bailout has been finished,” he said.

The bank will be transferred under the state control within a week or two, Pozdyshev also said.

“We have completed a program of capital injection into Promsvyazbank. The procedure has been finished this week. We have injected 113 billion rubles and 130 billion rubles using OFZ government bonds,” he said.

Promsvyazbank has been undergoing bailout through the central bank’s Banking Sector Consolidation Fund since mid-December 2017.

In January, the Finance Ministry said that the government will create a bank based on Promsvyazbank to handle defense order contracts in the conditions of Western sanctions.

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