Tatfondbank temporarily halts settlement and cash services amid surge in withdrawals
KAZAN. Dec 13 (Interfax) - Tatfondbank will not provide settlement and cash services in the period December 14-17, 2016 while it develops and implements comprehensive measures to restore liquidity, the bank said in a statement.
"At present, the bank's management led by CEO Robert Musin is conducting consultations with the government of the internal republic of Tatarstan. The plan of measures to restore the bank's financial stability has been forwarded to the Central Bank of Russia. Tatfondbank is doing everything possible in order to stabilize the situation in the shortest possible timeframe," the statement said.
"In order to preserve client deposits, during the temporary halt in settlement and cash servicing, the bank is prolonging those deposits and maintaining current interest rates," it said.
Corporate and individual entrepreneurial time deposits maturing in the period December 13-17 will be automatically renewed on the same terms as the previously concluded contract.
The bank pointed out that it has been experiencing liquidity difficulties since December 7 due to heightened demand to close accounts amid media publications concerning possible sanation and spreading panic on social networks.
Tatfondbank imposed limits on cash withdrawals on Monday and reduced the hours of operations of its 78 of 91 branch offices on Tuesday.