MBRD’s net loss rises 998.1%

15 April 2010 (09:10)

The net loss of Moscow Bank for Reconstruction and Development rose by 796.197 million RUR, or 998.1%, in the first quarter of 2010. The loss figures increased from 88.65 million RUR in the last quarter of 2009 to 884.847 million RUR in the first quarter of 2010.

The bank explains this rise of net loss has to do with the one-time installment of the possible loan loss reserves worth 957 million RUR. The reserves had to be set up in order to back up the bank’s large-scale loans in compliance with the Central Bank of Russia’s Provision No 254-P adopted on March 26, 2004. The Provision states the procedure of setting up bank reserves for possible loss on loans and debt.

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