UPDATE: Rostec looking for investor for Russia’s Novikombank

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MOSCOW, Jan 15 (PRIME) -- State industrial corporation Rostec is working on a decision to look for an investor for its troubled Novikombank and does not plan a bailout, an official representative for Rostec told PRIME Friday.

Business daily Kommersant reported that the central bank has uncovered that Novikombank’s asset quality was poor and the bank will have to create significant reserves. But it said that Novikombank cannot create the reserves and will have to be bailed out.

“We have no final decision on an investor. We may actually look for it but it is too early to say that any official talks are going on,” the official said, adding that there will be no bailout of Novikombank.

But the bank will go through management reshuffle, as its Vice President Pavel Ivanov will replace current Chairman of the Management Board Ilya Gubin, who will be engaged in solving the bank’s strategic issues, the representative said.

Kommersant also reported that according to the bank’s November 2015 report under Russian Accounting Standards, its overdue debt jumped 42% in the month and amounted to 11% of the bank’s credit portfolio. The business daily’s sources attributed the increase of overdue debt to Rostec’s affiliates, which worsened the quality of credits.

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