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Russia earmarked additional funds to save Bank Peresvet

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Russia earmarked additional funds to save Bank Peresvet

JSC Russian Regional Development Bank received around 30 billion Russian rubles in additional funds to finance the recovery of JSCB for Charity and Spiritual Development of Fatherland PERESVET, Reuters reported March 14.

Annual financial reports of the country's Deposit Insurance Agency and Russian Regional Development Bank show that the Russian state spent almost 100 billion Russian rubles to finance the recovery of Bank Peresvet, the newswire said. This compared with 66.7 billion rubles initially offered for this purpose by the Russian central bank and the DIA via favorable loans when the recovery program was launched in 2017.

The funding was increased when it became apparent that Peresvet's capital shortfall was higher than the 103.6 billion rubles initially estimated by the central bank, a source told Reuters.

Russian Regional Development Bank took control of Peresvet in June 2017 after it was selected by the central bank to oversee the latter's recovery procedure. In addition to the funding provided by the central bank, Peresvet's corporate creditors also contributed almost 70 billion rubles to finance the recovery scheme.

Russian Regional Development Bank saw its capital ratios falling after the takeover and recently said it expects that at least 138 billion rubles worth of loans from Peresvet's 165 billion ruble portfolio will not be repaid.

As of March 14, US$1 was equivalent to 57.16 Russian rubles.