11 Oct 2017 09:12

Court rules imposition of temporary administration, moratorium at Jugra Bank legal

MOSCOW. Oct 11 (Interfax) - The Moscow Arbitration Court has ruled that the Central Bank of Russia's (CBR) decision to install a temporary administration and impose a moratorium on meeting creditors' claims at Jugra Bank was legal, an Interfax correspondent reported from the courthouse.

The court also dismissed Jugra's motion to declare the CBR's July 6, 2017 order to make additional provisions as illegal.

Jugra's representative told reporters that he will recommend that the client file an appeal against the court ruling.

Jugra Bank filed the lawsuit to challenge this decision by the CBR on behalf of its former CEO Dmitry Shilyaev on July 24. According to him, at the time the temporary administration was installed at the bank there were no signs of illiquidity, asset stripping or illegal transactions.

Two other lawsuits have been filed with the Moscow Arbitration Court: by Jugra to challenge the CBR's decision to revoke the bank's license and by the CBR to declare Jugra bankrupt, hearings for which will be held on October 11 and October 27, respectively.