Deposit Insurance Agency Prevents Bank of Moscow’s Bankruptcy
4 July 2011 (09:16)
The Bank of Russia’s BOD approved of the plan for Deposit Insurance Agency State Corporation’s involvement in the prevention of bankruptcy for the Bank of Moscow. The plan provides for a number of measures aimed at eliminating the circumstances that cause the bank’s financial instability and at making sure the bank can operate healthily.
For one, the Bank of Moscow’s authorized capital will be raised by 100 billion RUR with the help of VTB Group’s investor organizations.
Deposit Insurance Agency will also provide the Bank of Moscow with a collateral-secured loan worth 295 billion RUR for a ten-year period, with the interest rate at 0.51% a year. This money will be supplied by the Bank of Russia through a five-year loan with a 0.5% annual interest rate.
The plan also contains some provisos on the early partial loan pay-off in case some money flows in from the toxic asset sources.
For one, the Bank of Moscow’s authorized capital will be raised by 100 billion RUR with the help of VTB Group’s investor organizations.
Deposit Insurance Agency will also provide the Bank of Moscow with a collateral-secured loan worth 295 billion RUR for a ten-year period, with the interest rate at 0.51% a year. This money will be supplied by the Bank of Russia through a five-year loan with a 0.5% annual interest rate.
The plan also contains some provisos on the early partial loan pay-off in case some money flows in from the toxic asset sources.
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