The Bank of Russia excluded the bonds of the Bank “Peresvet” from the list of securities acceptable as collateral for loans, to the materials on the regulator’s website.
On Friday, October 28th, all eight outstanding editions of ruble securities of the Bank approved by the Central Bank as collateral. Excluded bonds from the Lombard list will be Monday, October 31.
The Bank of Russia declined to comment.
Under the current rules, decisions on exclusion are taken in each case by the Board of Directors of the Central Bank. The main condition of raising money on the security of the Bank’s securities is the presence of at least one rating on the international scale at the level not lower than BB/Ba2. Meanwhile, last week S&P and Fitch downgraded the ratings of the Bank “Peresvet” to the default level D that could become the basis for exclusion.
Peresvet was an active borrower in the bond market, in circulation is now eight editions of its ruble bonds with a nominal amount of 32 billion rubles. Due to the fact that the paper of the Bank was in Lombard list, and their holders were wide enough. “Banks, creditvisa the Central Bank on the security of securities will now have to Deposit additional security or to extinguish the debt,” says the portfolio Manager of UK “Kapital” Dmitry Postolenko.
The exclusion of banks from securities Lombard list of the Central Bank are rare, say market participants. In the last year there were only two such cases: the bonds of Nota-Bank and Vneshprombank, whose securities have been excluded from the Lombard list for the month prior to the revocation of their licenses.
At the present time in the Bank “Peresvet”, the main shareholder is the Russian Orthodox Church, running the interim administration. It assesses the state of Affairs in the Bank. According to statements of the “Peresvet”, the insurance cover on deposits may amount to 7.4 billion roubles. Payments will commence on 7 November.
As the newspaper “Kommersant”, the turnaround can become all-Russian regional development Bank (RRDB), and the support mechanism — the conversion of debt of troubled Bank stocks.