MOSCOW, Oct 4 (PRIME) -- Capital adequacy of Russia’s B&N Bank was below a central bank threshold prompting the authority to start writing off U.S. $227 million of its debt to shareholders, it said in a statement on Wednesday.
“The level of B&N Bank’s core capital adequacy has been below 5.125% for more than six days, which in correspondence with a stipulation of the Central Bank of Russia…, obliges the bank to begin the procedure of writing off subordinated loans of B&N Bank included in added capital,” the statement said.
“This way, in fact a write-off of a $226.56 million part of B&N Bank liabilities to the shareholders will take place.”
The central bank launched bailout procedures at B&N Bank on September 21.
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