Russian cbank sees bill on bailout fund for banks by 2017

MOSCOW, Sep 6 (PRIME) -- Russia’s central bank hopes that a law to create a bailout fund for troubled banks will be prepared and adopted this year and the new bailout mechanism will start working in 2017, First Deputy Chairman Alexei Simanovsky told reporters Tuesday.

“We will try to submit (by the end of 2016) and we would like to hope for the adoption of this bill, but life will show. We would like the new mechanism to work starting from next year,” he said.

The bill is currently under discussion, Simanovsky said.

The new fund will help consolidate banks undergoing bailout procedures, reduce the debt burden on the Deposit Insurance Agency (DIA), and avoid a situation when bailout agents use the bank to stockpile bad assets, the regulator said earlier.

The central bank also expects that a half of existing banks will get a status of regional banks once capital requirements for federal banks are raised to 1 billion rubles from 300 million rubles, Simanovsky also said.

(64.7644 rubles – U.S. $1)

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