PRESS: Cbank seeks to get banks for interim management for 18 mos

MOSCOW, Oct 17 (PRIME) -- Russia’s central bank seeks to extend the term of an interim administration and a moratorium on meeting creditors’ claims to 18 months and change the procedure of calculating moratorium interests on foreign currency obligations, business daily Vedomosti reported Tuesday.

The regulator sent these amendments to the bankruptcy law to the Finance Ministry for consideration in early October.

The central bank is ready to provide an interim administration with powers of owners, the daily said. An interim administration will be able to use the capital of a bank to cover its losses, convert the bank’s preferred shares into common shares, acquire and redeem the bank’s shares that are on its balance.

Under the amendments, the term of an interim administration could be extended to six months, but the total term should not exceed 18 months. A moratorium should be in force at a bank for all this period.

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