PRESS: All negotiating creditors of Peresvet Bank agree on bail-in

MOSCOW, Apr 14 (PRIME) -- Peresvet Bank’s twenty eight creditors that took part in negotiations on its fate have agreed to convert 85% of debt of the bank into capital, or have the bank undergo a bail-in, Kommersant business daily reported on Friday quoting sources.

The debt is calculated as of November 1, 2016 and amounts to 52.6 billion rubles. It will be converted into a 15-year subordinate loan with an interest rate of 0.51%. Four largest shareholders will convert 90% of the debt, or 18.6 billion rubles, into capital at equal conditions, and the central bank is to provide 35 billion rubles.

A source told Kommersant that all banks and companies agreed with the bail-in, including Russian Agricultural Bank, Sovcombank, Otkritie Financial Corporation Bank, Sviaz-Bank, B&N Bank, Bank Zenith, power holding Inter RAO, and hydropower giant RusHydro.

Russian Regional Development Bank of Rosneft will act as a bridge bank, and the total cost of the bail-in will reach 106 billion rubles, which is five times higher than Peresvet Bank’s capital and deposits.

(56.6019 rubles – U.S. $1)

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