DIA to “diagnose” Moscomprivatbank by March 12

The Deposit Insurance Agency (DIA) will assess the state of affairs at Moscomprivatbank and will come out with its proposals on March 11—12 on the further performance of the lending institution’s which is owned by Ukrainian businessman Igor Kolomoysky, first deputy general director at DIA Valery Miroshnikov told Banki.ru.

The Bank of Russia decided to appoint since March 6 temporary administration at the Russian subsidiary of Ukraine-based PrivatBank to prevent the bank’s bankruptcy. DIA has also entered the lending institution as a temporary administrator since March 7. The state-run corporation will engage in Moscomprivatank’s rehabilitation.

“At the beginning of next week we plan to prepare our report on the situation surrounding the bank,” Miroshnikov said, adding that over the weekend the corporation wants to get things somewhat clear and come out with proposals (regarding the bank’s further activities — editorial note) as the corporation has no wish to experience another accident insured. According to him, the lending institution could be “diagnotized” on March 11 or March 12 as latest.

After the Bank of Russia appointed temporary administration the lending institution’s chief executive Dmitry Barbayanov noted that the Bank of Russia’s decision was primarily driven by political instability in Ukraine and is designed to help the lender “cope with the situation if client demand for the bank’s services grows”.

However, as Valery Miroshnikov said, the bank could face problems with assets. “We’re assessing the bank’s asset quality at the moment. It seems to me that it’s correct to make decisions preventively, i.e. to reduce the aftermath. While awaiting when the bank has nothing by the time of our arrival, in my opinion, is not right,” DIA’s first deputy head said.

Moreover, the Russian subsidiary of Ukraine-based PrivatBank, as Banki.ru visitors reported, encountered liquidity problems. Some deposit holders have been unable to receive their money under expired agreements since late February. The lending institution itself said it has no complaints of clients regarding any delay in taking back deposits.

Valery Miroshnikov also noted that “presently the bank has more than enough funds”, while the problem with the lack of currencies should be solved on Tuesday (March 11) when cash collection is carried out. “I heard that some units of the bank experience problems as bank cards are being changed. This trend is of not systemic nature, but a technicality,” the state-run corporation’s official said.

“If we do nothing, tomorrow problems could arise,” Miroshnikov concluded. Data available as of February 1, 2014 show that retail deposits held at Moscomprivatebank totaled Rub 39.6 bln. The lending institution ranks 91 in terms of assets in Russia.

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