Trust Bank capital shortfall bigger than thought; additional financing needed - Isayev
MOSCOW. April 7 (Interfax) - A comprehensive audit of Trust Bank conducted in January-April 2015 increased the size of the capital shortfall at the insolvent bank, which will need additional financing for sanation, Deposit Insurance Agency (DIA) chief Yury Isayev told journalists on the sidelines of an Association of Russian Banks meeting on Thursday.
"We understand that the gap has objectively widened. I am ready to put my name to this and repeat. This means that without supplementary financing, the situation will not right itself. This means, what can be done? Give more money to Otkritie Holding , which is provided for in the financial plan," Isayev said.
The joint position of the DIA and the Central Bank is that additional money should not be given to Otkritie Holding, which is conducting the sanation of Trust Bank, without a tender. Although this possibility is provided for in the plan, it is not obligatory.
"In acknowledging the change in the initial [conditions], we will announce a tender, in which Otkritie will also participate," Isayev said. Further along, a different method for covering the hole might be used. "Let's look at the possibility of updating, say, the repayment period, the interest rate," he said.
Discussion of the additional tender for the Trust sanation is currently underway. "We all have to reach agreement together on which hole we are talking about, and it seems we have agreed. Further along, there needs to be an agreement in the hypothetical situation that Otkritie does not win the tender: how will that all be transferred? This is difficult, because there are no precedents," he said.
A source told Interfax on March 31 that the Central Bank planned in the near future to examine the issue of holding a repeat tender on the sanation of Trust Bank.
Otkritie Holding received 127 billion rubles for the sanation of Trust Bank at the end of 2014. The newspaper Kommersant, citing sources in banking circles, reported late last year that Otkritie had asked the DIA for 47 billion rubles in additional financing.
An Interfax source on the market said that the Central Bank and DIA might conduct a repeat tender on the Trust Bank sanation, which would give Otkritie a change to receive additional funds to solve Trust Bank's problems.
