MOSCOW: Russia's central bank said on Monday it had bought over 99.9 percent of Otkritie Bank as a part of the bailout of what was once Russia's largest private bank.
Russia's banks have been under pressure from the country's economic slowdown and Western sanctions, prompting the central bank to step in to rescue Otkritie and another bank B&N earlier this year.
Last week, the central bank said that the bailout of Otkritie bank would require 456.2 billion roubles ($7.71 billion), more than a previous estimate of 450 billion.
Otkritie Bank was majority owned by Otkritie Holding, which in turn was co-owned by its executives, the state bank VTB , Lukoil executives and a number of other investors.
Separately on Monday, Otkritie Holding said that Otkritie Bank and Trust Bank had restructured Otkritie Holding's loans worth 174 billion roubles ($3 billion).
Otkritie Bank has restructured loans worth 77.6 billion roubles and another 96 billion roubles were restructured by Trust Bank, both in August and before the central bank announced the bailout process, spokesman for the bank said.
Trust Bank is also part of the central bank's bailout of Otkritie. Russian central bank and Otkritie Holding declined to comment.
Comments
Comments are closed for this article.