Report: Cbank to use Bank Trust for bad debts, terminate Rost Bank

MOSCOW, Mar 30 (PRIME) -- Russia’s central bank will create a bank for bad debts from National Bank Trust, and revoke the banking license of Rost Bank, Kommersant business daily reported on Friday citing sources.

“The central bank will announce its decision very soon. It already decided to pass bad assets of the banks that are bailed out by the central bank and the Banking Sector Consolidation Fund – Bank Otkritie Financial Corporation, B&N Bank, and possibly Promsvyazbank – to the structure,” Kommersant cited one of the sources as saying.

Yury Adamovich, a member of Bank Otkritie’s management board, will become the CEO of the bad assets bank, the business daily reported.

It is still unclear whether Rost Bank will be merged with Bank Trust. “The most probable option is to transfer bad assets from Rost Bank to Trust, to transfer good assets to Otkritie, and to terminate the bank after that,” one of the sources told Kommersant.

In February, Bank Otkritie’s CEO Mikhail Zadornov said that Bank Trust and Rost Bank were likely to be used to consolidate bad assets.

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