MOSCOW: The Russian central bank said on Friday its rescue plan for the once largest private lender Otkritie may require more funds next year, only a day after it increased its previous estimate.
Russia's banking sector is under pressure as the central bank has taken over two major private lenders, Otkritie and B&N, in less than a month. The banking licence of another major lender, Yugra, has been withdrawn with no bailout.
The central bank said in an emailed comment to Reuters that it did not rule out the need to provide Otkritie with additional funds but that would depend on how Otkritie manages to proceed with financial rehabilitation of a smaller lender Trust.
If the central bank decides to provide additional funds for the Trust bailout, Otkritie may benefit from releasing provisions for the bad loans related to Trust, the central bank said.
On Thursday, the central bank said the bailout of Otkritie would require 456.2 billion roubles, higher than the previous estimate of 450 billion roubles - which was already an increase from the initial plan.
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