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Russian regulator earmarks additional funds for bailed-out Timer Bank

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Russian regulator earmarks additional funds for bailed-out Timer Bank

The Russian central bank placed almost 2.4 billion Russian rubles worth of deposits in Timer Bank (JSC) to prop up the financial recovery of the lender, which was bailed out in 2014, Kommersant reported Aug. 2.

The funds were provided in June for a period of over three years, the newspaper noted, citing the lender's financial reporting. The deposits were most likely placed at an interest rate close to zero percent, and part of the funds were used by the lender to purchase Russia's high-yield federal loan bonds. The central bank did not officially disclose additional measures to support Timer Bank, the newspaper said.

The regulator bailed out Timer Bank in 2014, and the lender's financial recovery has been overseen by Bank Russian Financial Corp. JSC since December 2017, which is also when Timer received 42.9 billion rubles of financial support from Russia's Deposit Insurance Agency. Despite the ongoing recovery process, overdue loans constitute 40.9% of the lender's corporate portfolio, and the bank has a capital shortfall of 4.5 billion rubles, according to Kommersant.

As of Aug. 2, US$1 was equivalent to 65.33 Russian rubles.