Crimean Bank explained the error of failure to fulfill obligations to the Ministry of Finance

On 23 March the Crimean GenBank (155-th place by assets) has not fulfilled obligations to the Ministry of Finance for the purchase of OFZ, according to the Agency’s website. The amount of outstanding liabilities amount to 211 million rubles, according to the website of the MICEX.

As explained the first Deputy Chairman of the Board of the Gene Bank Sergey Mokhov, it is a technical error. “We buy bonds, we are active player in this market, we have 4 billion rubles in OFZ. What happened — the human factor — we have not managed to pay the bonds. We won a lot, and the Treasurer thought that the payment the next day, and it was day in and day out,” says Mohov.

The bidder fails to perform its obligations approved by the Ministry of Finance requests will be subject to disciplinary action under the rules of bidding for securities of the MICEX.

As stated on the website of the Ministry of Finance, the volume of supply on the auction amounted to 18.6 billion rubles, the volume of demand — 15.4 billion rubles., and placed value of 9.7 billion roubles, Weighted average yield of 11.08% per annum.

25 October 2015, a similar case was with Sberbank, which has applied to buy OFZ on 460,5 million rubles, but the deal is not fulfilled, citing a technical error. In addition, this day are unable to redeem OFZ banks “Neiva” and “Ring of Urals” on 102.3 million and 3.8 million rubles, respectively. Then due to failure of the transaction three banks has changed and the weighted average yield of five-year OFZ issue with before 10,14 10,18%. Two-year OFZ weighted average yield remained at the level of 14,8% per annum, wrote “Vedomosti”.

This time the non-performance by GenBank did not affect the weighted average yield.