24 Nov 2009 20:04

Deposit Insurance Agency spent 70 bln rubles to buy bad assets from banks

MOSCOW. Nov 24 (Interfax) - The Russian Deposit Insurance Agency (ASV) spent 70 billion rubles to purchase bad assets from banks, ASV chief Alexander Turbanov told journalists on Tuesday.

The ASV may have to purchase bad assets totaling up to 10 billion rubles from one or two other banks, Turbanov said.

The ASV spent 304 billion rubles on bank rescues, including 175 billion rubles provided by the Central Bank and 129 billion rubles from the federal budget.

A total of 18 banks were rescued, of which three were ultimately liquidated and 15 are being restored to financial health with the assistance of private investors.

The rescued banks must repay debts totaling 29 billion rubles. They have loaned a total of 130 billion rubles during the crisis period. Of the 15 banks, seven "are beginning to meet Central Bank requirements," he said.

By January 2010 one of the banks will be in compliance with all Central Bank requirements. "Accordingly, the rescue procedures in relation to that bank will be ended," he said.