On settlement of obligations of JSC Bank Sovetsky

According to the Bank of Russia-endorsed plan for the Deposit Insurance Agency State Corporation (hereinafter, the Agency) participation in settlement of JSC Bank Sovetsky obligations (hereinafter, the Settlement Plan), the Agency held a competitive selection of an acquirer for some assets and liabilities of the bank.

PJSC CREDIT BANK OF MOSCOW was named as the winner in the tender that took place on 9 July 2018.

According to the agreed Settlement Plan, PJSC CREDIT BANK OF MOSCOW will be assigned liabilities to JSC Bank Sovetsky’s creditors of which claims the bankruptcy legislation requires to be satisfied as first priority (except for individual entrepreneurs). This will allow saving household deposits of JSC Bank Sovetsky customers in their entirety including those above the insurance coverage of 1.4 million rubles.

The arrangements will see PJSC CREDIT BANK OF MOSCOW becoming a full service banking provider for all individual customers under bank deposit and bank account contracts on unchanged terms including deposit rates and terms.

PJSC CREDIT BANK OF MOSCOW is obliged to launch customer service for JSC Bank Sovetsky depositors by no later than 17 July 2018.

Once implemented, the procedure for transfer of assets and liabilities will enable accelerated settlements with first-priority creditors and improved terms of settlements with second- and third-priority creditors.

Information on insurance indemnity payouts to individual entrepreneurs will appear on the Agency website.

Individual entrepreneurs are entitled to insurance indemnities for their deposits in the amount of 100% of the sum of all their accounts (deposits) in JSC Bank Sovetsky but no more than a total of 1.4 million rubles per depositor. Insurance indemnities for individual entrepreneurs’ accounts (deposits) will be paid out by way of transfer of the amount of indemnity to the depositor-specified account with a bank participating in the deposit insurance system, which was opened for entrepreneurial activity purposes.

Settlements with other JSC Bank Sovetsky creditors will be made as part of liquidating procedures following the appointment of the Agency as receiver (liquidator) of JSC Bank Sovetsky. Information on the procedure for making creditor claims against JSC Bank Sovetsky will appear on the Agency website.

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