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  Sunday, August 9, 2020
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Tomorrow, the Central Bank of Russia is revoking the license from the Moscow-based Paveletsky Bank
The bank cannot cope with creditors' demands on its monetary obligations. Measures were repeatedly taken against it in compliance with the federal law, "On the Central Bank of the Russian Federation (the Bank of Russia)," the Central Bank says in a press release circulated today. The Central Bank has appointed Paveletsky assignees to start work, August 13, and terminate it as soon as a receiver or liquidator is appointed. The Paveletsky has made many bungles in its crediting policies to badly dampen its assets, so there is every reason to revoke its license, says the release. The bank made a number of big loans on unconventional terms from last January into May, and faced problems in demanding repayment. The loans robbed it of a major part of liquid assets, so the Paveletsky cannot any longer cope with its obligations in time. Meanwhile, even a small money outflow to pay overdue interbank loans can be fatal in the current financial situation. The biggest Paveletsky stockholders spared no effort to cure the matter-all to no avail, says the release. In another public statement, the Central Bank announces Kredittrust Bank problems. It has forwarded a Kredittrust file to law enforcement agencies, and is waiting for legal assessment of bank managers' actions. As the Central Bank sees the matter, financial market difficulties are not to blame for Kredittrust insolvency, of which its bosses alone are guilty. Kredittrust removed high-liquidity securities from its credit portfolio to replace them with non-liquid bills emitted by companies of doubtful solvency in a headlong move of June 1 into 3. Lump Kredittrust assets amounted to 6.8 billion rubles, as of June 15, of which discounted bills made 5.6 billion rubles. Kredittrust creditor indebtedness made 4.6 billion rubles, which it couldnot pay on schedule. The problem had no direct link to overall Russian banking developments, with a major deposit outflow, say Central Bank experts
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