The Bank of Russia will provide a rehabilitated bank "Otkrytie" assistance in the amount of 217 billion rubles

The total cost of the Central Bank of Russia for the rehabilitation of Promsvyazbank, Binbank and Bank Otkritie reached 2.8 trillion rubles.
The Bank of Russia decided to provide the rehabilitated Bank Otkrytie with additional financial assistance of almost 217 billion rubles. The financing will go towards the creation of a fund for non-core and distressed assets, the purchase of toxic assets by this fund from the balance sheets of Binbank and APF group, as well as the additional capitalization of pension funds, Otkrytie Bank and the Bank's CGS. Thus, the total spending of the Central Bank on the recovery of three large private groups ("Discovery", Binbank and Promsvyazbank) exceeded 2.8 trillion rubles.

On plans to allocate additional financing to "Opening" in the amount of 216.9 billion rubles. the CB press service said on Friday. The largest amounts of funding are associated with the creation of a fund for non-core and problem assets - only 63.3 billion rubles will be spent on the procedure for reorganizing Otkrytie Bank in the form of the allocation of JSC Bank Opening Special and its accession to the Trust bank.

Later, the Growth Bank will be added to this fund on the basis of Bank Trust. Trust and Growth Bank will receive from the Central Bank another 73.8 billion and 37.1 billion rubles. for the purchase of non-core and distressed assets from the balance sheets of Binbank, three APF groups (LUKOIL-Guarantor, NPF Electricity and RGS), as well as the insurance company Rosgosstrakh. This support will be provided to the "Discovery" in the form of CB deposits for a period of three to five years. These measures, according to the regulator, will allow "further development of a financially stable group".

Another form of support is the additional capitalization of the "Discovery" by another 42.7 billion rubles. Of this amount, 31.8 billion rubles will be allocated to support the pension funds of the group. RGS Bank will receive only 2 billion rubles, and Bank Otkrytie will be capitalized by 8.9 billion rubles. The Central Bank will provide this financing through the redemption of an additional issue of shares of the "Discovery", and the bank, in turn, will send the money received to provide financial assistance to "daughters". This support, according to the statement of the regulator, will allow these organizations to compensate for losses from their fair value revaluation of Rosgosstrakh's shares, as well as from impairment of assets, mainly the requirements for Otkritie Holding and Group O1.

The Bank of Russia creates a fund of non-core and distressed assets on the basis of the bank Trust. The assets of the bank "Otkrytie", Binbank and Promsvyazbank will fall into this fund, which were reorganized in 2017. For these purposes, the Central Bank will set up "Opening Special Bank" for one day, which is necessary to avoid paying taxes on "paper" profits, and then this special bank, Growth Bank and "bad" part of Avtovazbank (the former "daughter" of Promsvyazbank) to the "Trust". According to preliminary estimates, the fund will receive distressed assets worth over 2 trillion rubles. (see "Kommersant" on June 19). In early June, the head of the Central Bank Elvira Nabiullina in an interview with Reuters estimated the cost of the rehabilitation of these three private banking groups at 2.62 trillion rubles. Taking into account new expenses, this sum exceeded 2.8 trillion rubles.

Granting of funds to the Trust and Growth of the bank for the purchase of troubled debts and their consolidation in their fund is due to an objective lack of liquidity in banks, Expert RA analyst Yury Belikov believes.

Roughly speaking, if it were not for the new injections from the regulator, then they would not be able to carry out the deal, - the expert believes.

"Or at best, banks would have to try to curtail part of the loan portfolio ahead of schedule, which is difficult given its poor quality." As a confirmation of his words, Mr. Belikov noted that now the liquid assets (up to 30 days) of "Trust" are only 8.9 billion rubles. (less than 2% of gross assets), and liquid assets Growth of the bank - 9 billion rubles. (less than 1.5% of its gross assets). The estimated amount of the cession is probably an order of magnitude greater than the free liquidity of both banks.

The justification for additional financing to the bank "Otkrytie", according to Yuriy Belikov, is not so obvious, as the state of the bank's liquidity is now "more than satisfactory". About 29% of the bank's gross assets (505 billion rubles) are represented by liquid assets that can be converted into cash within a month. "Part of this liquidity pillow could be painlessly donated during the reorganization, given that the resource base of the bank has stabilized, and there is no clear need for maintaining an excess supply of liquid assets," the expert concluded.