Russia's state space corporation Roscosmos was selected by the Central Bank of the Russian Federation to act as a new investor in a financial recovery plan for JSC FUNDSERVICEBANK.
As the new investor, Roscosmos will increase the authorized capital of Fundservicebank, and the lender will provide core banking services to the corporation and its subsidiaries, the central bank said May 14.
A financial recovery program for Fundservicebank was launched in 2015, with JSCB Novikombank initially selected as an investor in the bailout. The central bank also said at the time that Fundservicebank's liabilities to Roscosmos, which was the lender's largest creditor, would be converted into a 27 billion ruble subordinated deposit.
The upcoming transfer of Fundservicebank from Novikombank to Roscosmos was mentioned in the lender's 2017 annual report, Vedomosti reported May 14. The lender also said in the financial report that it would have to set aside additional reserves of 44.1 billion rubles from its profit before provisions and taxes, the newspaper noted.
As of May 14, US$1 was equivalent to 61.78 Russian rubles.
