On activity of OJSC NB TRUST

On 22 December 2014, the Bank of Russia Board of Directors took a decision on the financial resolution of OJSC National Bank TRUST and approved the plan for participation of the state corporation Deposit Insurance Agency (hereinafter, the Agency) in preventing the bank’s bankruptcy.

The financial difficulties of OJSC NB TRUST resulted from the long-lasting actions of the former owners and management of the bank. The schemes used to provide loans to borrowers not carrying out real business activity and to fund investment projects not generating cash flows bear the evidence of asset diversion from OJSC NB TRUST.

During 2014, the Bank of Russia repeatedly indicated that OJSC NB TRUST underestimated credit and other risks on the placed funds, however the management and owners of OJSC NB TRUST failed to take adequate measures to normalise the situation.

The Bank of Russia has submitted the information on the activity of the management and owners of OJSC NB TRUST to the Prosecutor General’s Office of the Russian Federation and to the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision making.

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15.01.2015 00.00.00