Deposit Insurance Agency agrees to merge Sverdlovsk Gubernskiy Bank with SKB-Bank

12 November 2008 (08:31)

Deposit Insurance Agency, the state corporation, reports that an agreement to merge Sverdlovsk Gubernskiy Bank, SKB-Bank, and Yekaterinburg-based Sinara Group on November 11, 2008. The agreement is to determine the order and the terms of the involved parties’ interaction while trying to prevent Sverdlovsk Gubernskiy Bank from going bust.

The agreement is based on the Federal Bill 175 as of October 27, 2008 on the additional measures meant to support the Russian banking system’s stability until December 31, 2011. The federal bill provides for the Deposit Insurance Agency’s participation in the banks’ financial recovery, so the Deposit Insurance Agency is to take part in avoiding Sverdlovsk Gubernskiy Bank’s insolvency. The decision to this extent was taken on November 6, 2008 by the Bank of Russia’s Board of Directors.

The general agreement also states that Sinara Group (that is to become the project’s investor) promises to buy enough of Sverdlovsk Gubernskiy Bank’s shares in order to be able to control the AGM outcomes. At the same time, the investor also promises to come up with a detailed plan of Sverdlovsk Gubernskiy Bank’s financial recovery and do everything to prevent its bankruptcy and eventually merge it with SKB-Bank.

Deposit Insurance Agency, in its turn, will provide Sinara Group with financial aid needed to prevent the bank’s insolvency and will also keep an eye on the implementation of the recovery plan by both parties involved.

Sverdlovsk Gubernskiy Bank and Sinara Group agreed to provide Deposit Insurance Agency with all the papers and materials as well as reports on the project.

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