UPDATE: Russian cbank appoints interim administration at Peresvet Bank

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MOSCOW, Oct 21 (PRIME) -- Russia’s central bank has appointed an interim administration to Peresvet Bank, the country’s 43rd largest bank by assets, for six months, the regulator said in a statement Friday.

The central bank also introduced a moratorium on fulfillment of liabilities to the bank’s creditors, which is classified as an accident insured, meaning that redemption of the bank’s deposits will be launched no later than in two weeks.

The bank’s largest shareholders are the Moscow Patriarchate of the Russian Orthodox Church with a 36.5% stake, the Chamber of Commerce and Industry’s company Expocentre with a 24.4% stake, and the Russian Orthodox Church’s 100% affiliate Sodeistviye with a 13.2% stake.

Maxim Osadchy, director of the research department of Corporate Finance Bank, said that deposits of individuals and individual entrepreneurs with Peresvet Bank amounted to 22.5 billion rubles as of October 1, and the Deposit Insurance Agency may redeem up to 20.3 billion rubles of them. The most probable scenario is that the bank’s license will be revoked, but there is also a possibility of a bailout, he said.

According to the Moscow Exchange, the yield of the bank’s June 2017 bonds jumped to 225% and their price fell 40 percentage points to 49.55%. The yield of exchange bonds with maturity in October 2017 soared to 169% and the price plunged 41 percentage points to 45.62%.

The yield of Peresvet Bank’s exchange bonds with maturity in September 2020 surged to 421% annually with the price falling 33.7 percentage points to 55%, as seen by PRIME in the bourse’s data.

(62.4194 rubles – U.S. $1)

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