Audit of Bank assets bad debts of about 2 trillion rubles showed that half of them unrecoverable, and the potential losses of the Bank of Russia to rescue the three major credit organizations can significantly grow.
Sources of repayment is only 50% of the assets of PJSC Bank “trust”, bringing together bad debts PJSC Bank “FC Opening”, PJSC “Bank” and PJSC “Promsvyazbank”. This was told to Bloomberg Chairman of the Board of “Trust” Alexander Sokolov. Expenses of the Central Bank can substantially exceed 760 billion roubles that were allocated for recapitalization, according to finanz.ru.
The Central Bank initially expected to return 40-60% of the value of the assets of a “bad Bank”, but in the beginning of the month Deputy Chairman of the regulator Vasily Pozdyshev has informed that the return will be closer to the lower boundary of this range. Alexander Sokolov said that the dialogue with the Bank of Russia on the real value of assets of “Trust” can be completed before the end of the year.
Due to the high concentration of banking activities on the project beneficiaries of the “legal structure” of the transactions were often worse than other creditors, said Sokolov. According to him, many loans were structured with balloon payments when a significant portion of the payments on the end of the five-, seven – or 10-year horizon, “but under that there is no reasonable financial model.”
On November 1, negative equity “Trust”, which the regulator allowed not to comply with the regulations was about 650 billion rubles, and, in fact, this potential loss of the Central Bank, as it is financed by the Bank, said an analyst at Fitch Ratings Alexander Danilov. If the Bank will have to dosdat reserves for non-performing assets, the expenses of the Central Bank will increase.
The Bank’s asset quality further deteriorated shortly before the reorganization that contributed to the deal to replace a secured loan of O1 Group Boris mints on her own long-term bonds for 30 billion rubles, and transactions of JSC “Rost Bank” with the group “Safmar” to “hundreds of billions of rubles”. The new leaders are trying to expand these deals in the courts, says Sokolov.
He noted that instituted “a lot” of criminal cases against former managers and former owners of the failed credit institutions.