CBR's board of directors confirms plan for Bank of Moscow's financial bailout
MOSCOW. Dec 23 (Interfax) - The board of directors at the Central Bank of Russia, at a meeting on Friday, approved a plan for Bank of Moscow's financial bailout, head of the CBR's licensing and financial rejuvenation department, Mikhail Sukhov, told Interfax.
"The board of directors also reviewed and confirmed the plan [for financial rejuvenation] without changes," he said.
The CBR's committee for banking oversight confirmed a plan on Monday for bailing out Bank of Moscow , the head of Russia's Deposit Insurance Agency (DIA), Alexander Turbanov, earlier said.
Bank of Moscow is now going through financial restoration procedures. The DIA presented the bank a loan worth 295 billion rubles. Furthermore, VTB Group plans to invest 100 billion rubles in the bank's capital in the framework of an additional share issue.
At the end of February 2011, VTB acquired 46.48% in Bank of Moscow's charter capital, which belonged to Central Fuel Company (in which the Moscow government owns 100%). At the same time, VTB acquired 25% plus on share in Capital Insurance Group, which owned 17% in Bank of Moscow. This move ensured control of an additional 4.33% in the bank. The total value for these transactions came to 103 billion rubles.
At the end of September, VTB Group boosted its stake in Bank of Moscow to 80.57% through acquiring shares form minority owners for 50.2 billion rubles. The group's stake at the start of December went up by 92.22%. VTB is ready to spend 266 billion rubles for the consolidation of 100% in the bank.
Bank of Moscow was sixth biggest bank by assets in Russia at the end of the third quarter 2011, according to the Interfax-100 ranking, compiled by the Interfax Center for Economic Analysis.