DIA, CBR may impose restrictions on Bank of Moscow investment
ST. PETERSBURG. July 14 (Interfax) - The Deposit Insurance Agency (DIA) and Central Bank of Russia may move to impose restrictions on the 295 billion rubles on investments Bank of Moscow will raise for measures involved in its rehabilitation, DIA chief Alexander Turbanov told reporters.
"The financial rejuvenation plan, I think, could contain certain indicators to which will be included, possibly, some kind of restrictions [on the investment of funds]," Turbanov said.
The agency plans by November 1 to confirm a finalized plan for the bank's rehabilitation. The director of the Central Bank of Russia's licensing and lending-organization financial rejuvenation department, Mikhail Sukhov, said the Central Bank and DIA, having reached preliminary coordination with VTB of a plan for rejuvenation measures, have said that the received 295 billion rubles will be invested in OFZ federal loan bonds. That is not yet spelled out in the documentation. "The figure of 295 billion rubles itself was determined by a formula of discounting to ten-year OFZ," he said.
Sukhov said he thinks that if in the future the possibility is considered of investing funds in other paper than OFZ, then Bank of Moscow specialists will need to consult on this with auditors. In the event that yield on that paper is less than that generated by OFZ, then "the economics of this operation will disappear," he said. Any decision on the investment of funds raised by Bank of Moscow from the DIA will have to conform to International Financial Reporting Standards (IFRS), he added.
