Start the procedure of financial recovery in 19 of troubled Russian banks, the Central Bank has paid 500 billion rubles, Bloomberg reports, citing estimates of the international rating Agency Fitch Ratings. According to experts of the Agency, these banks it would be cheaper to just liquidate, pay the protected insurance program for deposits owed to depositors.
In the report Fitch analysts noted that the Central Bank has spent on the Bank bailout, which is difficult to name even regional significance, about 1.1 trillion rubles, which may be due to the efforts of their lobbyists.
“In some cases when making decisions about saving the banks was probably taken into account the risks to financial stability. However, lobbying by major lenders could also be one of the factors, while the spread of state support for them creates unequal conditions on the market,” reads the Fitch report.
At the end of January 2017, the Chairman of the Central Bank Vasily Pozdyshev stated that the current resolution mechanism for troubled banks, in which sanatory receive money via Bank, Agency on insurance of contributions (ASV), is in direct conflict with the goals of monetary policy aimed at reducing inflation.
“In terms of high interest rates to pay off within ten years, hole, for example, 10 billion rubles. the differential rates of 10% per annum, it was necessary to give a soft loan of 16 billion rubles,” — said Pozdyshev.
The Chairman of the Central Bank noted that the decline in rates in the credit market to 6-7% to close holes in 10 billion will have to give the turnaround a loan of 20 billion rubles, which is very inefficient. “Accordingly, we must switch to a different mechanism,” said Pozdyshev.
According to ASV, as of 1 January 2017, the total size of funding for financial rehabilitation of banks subject to the repayment of principal amounted to almost 1.2 trillion rubles.
However, the interviewed representatives of the banks expressed doubts that the transition to a new model of rehabilitation will be able to fully realize.
“With the failure of the old model, the Central Bank will have to decide what to do with the previous redevelopments. It is not excluded that old sanatory wish to return the projects that have overrated state. Then the savings may not happen at all”, — said the representative of one of banks-sanatory.