Orient Express Bank says can break cap adequacy rule

MOSCOW, Jun 17 (PRIME) -- Orient Express Bank sees the risk of breaking the central bank’s capital adequacy rule and is asking the board of directors to support its financial stability, according to a letter by Interim CEO Alexander Nesterenko, seen by PRIME on June 14.

He said that the basic forecast by the bank envisages a gradual capital adequacy rise throughout the year but it does not include any emergencies. “In the current conditions, capital adequacy of the bank is assessed as critically low and unable to absorb any of the emergencies, In case of such events, the bank will inevitably violate the capital adequacy requirements and its financial stability will suffer from all sorts of negative outcomes.”

An official of the shareholder Baring Vostok confirmed having received the letter and its content.

On June 13, Orient Express Bank fulfilled the order of the central bank to raise the reserves by 5 billion rubles, and an official of the bank said that its financial stability was doubtless.

(64.4326 rubles – U.S. $1)

End