The Ministry of Finance: the size of deposits of individuals, involved in the mechanism of bail-in may not be reduced

MOSCOW, 4 February. The threshold size of deposits of natural persons that may be converted into shares on the new mechanism of solving problems of unstable banks bail-in is not defined yet. But exactly the amount cannot be less than 100 million. this was announced by Deputy Finance Minister Alexei Moiseyev on the TV channel “Russia 24”.

“While there is a working version, – the figure which we are discussing with the Central Bank of 100 million roubles. I assure you that there is no talk about reducing this amount. It can grow into 1 billion or more, but that it cannot be less than 100 million – that’s for sure,” said Moses.

The mechanism of bail-in has not been used yet in Russia. Previously Deputy Chairman of the CBR Mikhail Sukhov reported that the Bank of Russia expects in 2016 to enable bail-in to solve the problems of unstable banks. Initially it was about the application of this mechanism only in respect of legal persons, however, in late January, Moses said, discussed and the possibility of its use as additional compensation for large depositors.

According to the forecast of the Ministry of Finance, the system of bail-in can earn not earlier than mid-2017.