On Friday, October 21, the Central Bank imposed in the Bank “Peresvet”, the main shareholder is the Russian Orthodox Church, a temporary administration and a moratorium on payments to depositors and creditors. The Bank has offices and branches of “overexposure” in the street of St. Sergius of Radonezh in Moscow attracted about 60 investors. Waiting for the opening of the office, but instead, on the door there was a sign announcing a moratorium on payments. Standing at the door of the ATM was disabled.
For depositors, the news came as a surprise: in recent days, the Bank issued deposits, though in limited amounts — up to 100 thousand rubles In the hope to get their money back, the people were on duty at the Bank before lunch. From time to time out of the office left staff “overexposure”, but did not give comments.
“I opened an account in the hope high interest rates”, — told one of the customers of the Bank, introduced himself as an employee of the Foundation of the temple of Christ the Savior. Another contributor on the problems of the Bank have learned from friends who called him early in the morning and said, “the Bank is collapsing, run — save your money”. “The leadership was silent until the last” — he complained.
Around the second hour of the day, the representative “Peresvet” went to investors and told that payments would start in two weeks (November 7). The Bank was able to pass only some customers — those who had rented the safe Deposit box.
Unlike investors, “Peresvet” bankers and analysts have suggested that the situation in the Bank is unstable. October 4, Fitch, studied the hundred most significant borrowers of the Bank, said: about 12 billion rubles of Bank loans are risky, as issued to borrowers that do not have mostly real assets. The volume of such assets corresponds to half of the Bank’s capital in the first half of the year, noted the Agency.
Ten days later it became known that disappeared Chairman of the Board “Peresvet” Alexander Shvets, and his whereabouts are unknown. On the same day the Bank issued a formal notice, which stated that Sweden will not disappear, and is based in Moscow and is undergoing treatment. At the time of his illness to perform the duties of the Chairman of the Board, was Vice-President of “overexposure” Pavel Panasenko. The situation was commented on in CB: “Relight” works in a regular mode, and the absence of the Manager for cause should not be a cause for concern.
The President and the Chairman of the Bank “Peresvet” Alexander Shvets was born in 1959 in Donetsk, the Rostov region. Graduated from the Moscow Institute of management named after Sergo Ordzhonikidze. “Peresvet” came in 1994. Four years later he became its Vice-President, and ten years later, in the summer of 2008, was elected President of the Bank. In July 2016 Shvets became the owner of 12.8% of the voting shares of the Bank.
The disappearance of the head “Peresvet” one of the bankers interviewed recalled the story of the Bank “Russian credit”. As previously mentioned , shortly before bankruptcy in 2015 disappeared its main shareholder Anatoly Motylev. The next day after that, July 24, the Central Bank revoked the licenses of three banks Motylev: “Rossiyskiy Kredit”, M Bank and AMP Bank, and already July 25 — another one of his Bank “the Tula industrialist”.
Events unfolded rapidly: the absence of the head of the Bank alerted its customers, and because of their influx on Tuesday, October 18, the “closest distance” had to limit the issuance of deposits. The call centre staff of the Bank told me that the grant money is limited to natural persons amounts to 100 thousand rubles, or $1.5 thousand, the Official representative “Peresvet” reported that liquidity problems to the Bank, and the increased demand of customers Bank stability will not undermine.
Nevertheless, in the first half of October, “Peresvet” actively quenched obligations on the interbank lending market. “The outflow of funds on the interbank market could become one of the causes of shortage of funds. The first thing that they do in case of an alarm of rumors — close limits,” said the Treasurer of one of the banks top-50. According to him, the contractors of “overexposure” were small banks, including that he has opened the correspondent account. Information was confirmed by the Treasurer of another Bank, who had heard that the contractors began to close limits on the “Peresvet” at the beginning of the month.
“The situation with the “Peresvet” — the result of panic similar to the panic of depositors of Alfa-Bank. Shareholders of the Bank faced an outflow of liquidity caused, in particular, the publication of the results of the Fitch report,” — said the Deputy General Director of “Interfax Business Service” Alexey Buzdalin.
On Saturday, the causes of introduction of temporary administration in the Bank called TSB: active lending projects in the construction industry. “The problem, according to preliminary data, linked to taken by the Bank of high risk through active lending projects in the construction industry faced in recent years with a serious drop in demand”, — said the representative of the press service of the Central Bank in response to the request .
According to the prospectus of Eurobonds up to 40% of its loan portfolio in the first quarter of 2015 was accounted for by loans to construction companies.
The Church and the state-owned company
Problems at the Bank could begin earlier. Two sources claim that in the summer of the Russian Orthodox Church considered the possibility of changing the reference Bank. “Interfax” with reference to sources close to shareholders of the Bank, said that “Peresvet” kept about a third of all funds of the ROC. “The main problem today was the secrecy and the inability of its management to clearly explain what, how and why it does”, — said the Agency interlocutor.
Several customers of the Bank, which managed to contact , say, “Peresvet” tried until the last week to carry out tax payments, payroll, client operations, and even redeemed the last coupon. However, according to interlocutors of the edition, other operations of legal entities were enqueued. Customers admit that they personally knew the President of the Bank and are concerned about the lack of it.
According to statements of the Bank “Peresvet” on October 1, 2016, available on the website of the Central Bank, the total assets of the Bank amounted to 200 billion rubles, Credit portfolio — 145,9 billion, or about 70% of the assets. Most of them issued to companies, and about 5 billion rubles to individuals. Deposits by private customers amount to 22.4 billion rubles, that is 11.3% of the Bank’s liabilities.
The priorities of the “Peresvet” was to serve the financial flows of the ROC, as well as government agencies. In particular, in 2015 in the prospectus of Eurobonds, the Bank pointed out that the reputation of the Russian Orthodox Church helps the growth of the customer base of the Bank and “serves as the main tool to attract new customers.” According to IFRS for the first half of 2016, 52% of the loan portfolio of the Bank accounts for different government agencies. As told sources familiar with a client base of the Bank, among them – “inter RAO UES”, “RusHydro”, Pulkovo airport.
As the representative of Pulkovo, “Peresvet” placed term deposits airport 2.3 billion rubles concluded by results of open competitions. It was assured that the problem Bank will not affect the solvency of the airport. “All his current commitments, and the investment program will be performed under the terms of the contracts,” — said in a statement.
The press service of “inter RAO” announced that the company is working with “Peresvet” for several years. Among its partners, the Bank also calls the Fund of assistance to reforming of housing and communal services, the government of Moscow, Federal customs service, Federal tax service, the SME Bank, the Russian venture company.
In a press-service of Yerevan municipality reported that the Moscow government does not have a Deposit account in the Bank “Peresvet”. The Fund of assistance to reforming of housing and communal services did not respond to a request . The Bank actively participated in regional programs, the state program of financial support of small and average business. In particular, as at 30 June 2016 deposits received from SME Bank amounted to 6.3 billion rubles, stated in the financial statements of the credit institution in accordance with IFRS.
In anticipation of a default
Peresvet have been actively attracting financing in the debt market, posting a total of nine bonds by 29.49 billion rubles (data reporting IFRS for the first half). In addition, in July 2015, the Bank has placed on the Irish stock exchange subordinated Eurobonds RUB 8 billion According to calculations of the head of the Directorate of analysis of debt instruments “URALSIB capital” Dmitry Dudkin, after payment of offers in this year’s appeal is bond “Peresvet” in the amount of about 17 billion rubles.
Employee of the Bank involved in the placement of bonds, said that “Peresvet” has regularly used the exchange scheme bonds to raise money in the Central Bank. Due to the lack of demand in the bond market of paper could buy a Bank counterparty, which has built a REPO of the Central Bank. In turn, when the contractor issued its own bonds, they were bought out by “Peresvet” and also attracted liquidity, the regulator said on the condition of anonymity the employee of large investment company. This information was confirmed by two top managers of the investment companies participating in the placement of bonds of the Bank.
According to one of them, the bondholders can be among the most affected in case of bankruptcy, “Peresvet”, as they refer to a lender of last turn. In addition, according to experts, given the fact that the bonds of “overexposure” were included in the Lombard list of the Central Bank, their holders can be quite broad. “They will now have to make additional provision, if these securities were pledged under repurchase agreements”, — says the analyst of IG “Region” Alexander Ermak.
On October 21, after reports of the Central Bank on the introduction of administration “Peresvet”, the Bank’s bonds on the Moscow stock exchange fell below 50% of face value, and their yield exceeded 150-200%. One of the issues maturing in 2020 transactions were recorded with a yield above 500% per annum.
As it turned out , among the buyers of the bonds of the Bank “Peresvet” also, there were several major pension funds, including the NPF, the group Safmar of Mikhail Shishkhanov and the O1 group Boris mints. “We had investments of several hundred million rubles,” — said on condition of anonymity, one of the top managers of O1 Group. According to him, the funds bought the bonds because they had good yields and a high rating.
In the group Safmar do not disclose information about the amount of purchased bonds “Peresvet”. “This is a small amount. In any event this would not affect the results of investment of pension funds”, — says the General Director of UK “EFG asset management” (managing the pension funds of the group of Mikhail Shishkhanov) Alex Kuznetsov. However, according to him, the introduction of temporary administration of the Central Bank in Bank does not mean defaulting on its debts, since the Bank paid in good faith with investors.
In October, three times the Bank paid coupon income on bonds, spending in excess of 300 million rubles Last payment, the Bank held the day before the administration of the Central Bank.
God help you
The formal reason for the introduction of temporary administration in the “Peresvet” was the failure of the Bank “of the claims of creditors on monetary obligations in the terms exceeding seven days,” reads the release from the Central Bank. According to senior Director financial institutions Fitch Ratings Alexander Danilov, the review of the regulator may mean that the Bank last week, apparently, did not return deposits or did so partially. “We are on Wednesday placed the ratings of the Bank “Peresvet” under observation for a possible downgrade to default level in the case of aggravation of problems with liquidity. In the near future, the rating will be revised,” he says.
Interviewed experts believe that the next step that can be taken by the regulator against the Bank “Peresvet”, could be his recovery. The purpose of the appointment of the temporary administration was a moratorium on satisfaction of creditors, said a top Manager of a major Bank. Market participants expect that “Peresvet” will pass the procedure of financial recovery, getting a line of credit to cover the liquidity gap.
“It’s a pretty decent Bank. I think it would be much better if we could find a way to restore his work,” said TASS, the head of ARB Garegin Tosunyan. He added that the management of the Bank “Peresvet” while no one for support of ARB in is not addressed.
According to analyst PSB Dmitry Monastyrshina, everything will depend on the time administration: how it will assess the quality of assets on Bank balance and whether assistance from the shareholders. According to the Bank according to IFRS for the first half, with balances of liquidity on accounts with the Central Bank — 16 billion rubles., as about 5 billion rubles of securities.
Fitch estimates that at the end of the third quarter of 2016, the liquidity cushion of the Bank amounted to about 11 billion rubles.
“The client base of “Peresvet” — a large number of government agencies. In this case, the advent of the interim administration needs to reassure customers. I think that in the near future the Bank will be supported by the credit of the Central Bank in connection with the beginning of procedure of rehabilitation”, — said Buzdalin. On Friday one of the shareholders “Peresvet” — “Expocentre” (owns 24.4% of the Bank) — said it was working with the Central Bank over the resolution of the situation in the Bank.
With the participation of Catherine Markhulia, Roman Markelov, Timofey Dzyadko and Igor Orlov