Central bank approves bailout plan for troubled Otkritie FC Bank

MOSCOW, Sep 18 (PRIME) -- Russia’s central bank has approved a bailout plan for troubled Otkritie Financial Corporation (FC) Bank, under which it plans to boost the bank’s capital and provide funds to support its liquidity, the regulator said late on September 15.

“The Bank of Russia has approved a plan of participation in the implementation of measures to prevent the bankruptcy of the public joint-stock company Otkritie Financial Corporation Bank, which encompasses a capital increase of the bank and providing it with funds to maintain liquidity, which will increase its financial stability and promote the further development of the credit institution,” the report said.

The central bank said in late August it will bail out troubled Otkritie FC Bank and become its investor using funds of the banking sector consolidation fund, the newly-created mechanism. The regulator also preliminarily estimated Otkritie group’s capital needs at 250–400 billion rubles.

The central bank’s Chairwoman Elvira Nabiullina said earlier in September that VTB 24’s CEO Mikhail Zadornov will become the CEO of Otkritie FC Bank.

Zadornov told Kommersant FM radio station on September 16 that previous owners of Otkritie FC Bank will unlikely receive a stake in the bailed out bank.

He also said he will start fulfilling the functions of the bank’s CEO either in late 2017 or early 2018.

(57.5336 rubles – U.S. $1)

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