Russian cbank appoints interim administration at Otkritie FC Bank

MOSCOW, Aug 29 (PRIME) -- The Russian central bank has introduced an interim administration at Otkritie Financial Corporation (FC) Bank and plans to become its main investor, using funds of the banking sector consolidation fund, the authority said in a statement on Tuesday.

“The Central Bank of Russia has decided to fulfill measures aimed at increasing the financial stability of Otkritie FC Bank… In the framework of these measures, participation of the Central Bank of Russia as its main investor is planned with the use of money of the banking sector consolidation fund,” the central bank said.

The measures will be implemented in cooperation with the current owners and executives of the bank, it will ensure uninterrupted operations and further development of Otkritie FC Bank on the banking market.

No limit on fulfillment of creditor demands is introduced, a mechanism of creditor money conversion into shares, or bail-in, will not be applied.

Employees of the central bank and the banking sector consolidation fund will comprise the lineup of the interim administration.

The bank saw a large outflow of client money in June–July, and its dependence on refinancing operations with the central bank increased.

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