No decision yet on creation of 'bad' debt bank within BSCF bank bail-out process - Nabiullina
ROSTOV-ON-DON. Feb 1 (Interfax) - There has been no decision at this point on the creation of a bank of "bad" debt as part of the bank bail-out process taking place via the Banking Sector Consolidation Fund (BSCF), Russian Central Bank head Elvira Nabiullina told journalists.
"There are various discussions underway, but no decision has been made," Nabiullina said.
Presently, the BSCF includes Otkritie bank , B&N Bank and Promsvyazbank , the latter of which will be handed over to the Russian State Property Management Committee (Rosimushchestvo) in Q1 2018 and will service companies of the military-industrial complex.
Otkritie head Mikhail Zadornov has said in an interview with the Kommersant newspaper that the bank leadership will come to a decision on troubled assets in Q1 2018. "We'll gather troubled and non-core assets held by Otkritie, Trust, and the Rossgosstrakh pension funds [all part of Otkritie Group] into a separate structure. Perhaps this will be a newly created fund, perhaps a 'bad bank' that can be created on the basis of Trust, for instance. We have yet to decide on the form," Zadornov said.