UPDATE: Cbank: Peresvet Bank may sign deal with creditors soon

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MOSCOW, Mar 17 (PRIME) -- Troubled Peresvet Bank has good chances to sign an agreement with creditors in the near future, Central Bank First Deputy Chairman Dmitry Tulin told reporters on Friday.

“Everything is going well. Good chances for reaching an agreement (with creditors),” he said.

Tulin could not provide any figures and said an official statement would be released soon.

He also said that problems at Peresvet Bank turned to be an unpleasant surprise for the central bank and almost all creditors.

“With Peresvet Bank we can’t unfortunately boast that we’ve assessed the financial situation in advance. It was an unpleasant surprise for us, as for almost all of its creditors, including very professional ones who make financial diagnostics, due diligence themselves,” Tulin said.

“We were so skilfully deceived there, or we did not work enough.”

The central bank introduced an interim administration at Peresvet Bank in October 2016 for six months. In late February, the regulator appointed the Deposit Insurance Agency (DIA) as an interim administrator at the bank, with an order terminating activities of the previous interim administration. Capital gap at the bank is estimated at 35.1 billion rubles.

Media reported earlier that the bank is to be bailed out through a bail-in procedure, which implies conversion of debt into capital. For this goal, 125 billion rubles worth of 15-year subordinated bonds will be issued with a coupon of 0.51% annually. Shareholders were offered to convert 90% of claims into the bonds, and other creditors 85%. If creditors do not conclude relevant deals with the bank by April 14 and fail to collect the necessary sum on its accounts by April 24, the central bank will revoke the bank’s license.

(58.2437 rubles – U.S. $1)

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