March 14, 2018 / 6:04 AM / a year ago

Russia increased bailout to Peresvet bank by over 30 bln rbls

MOSCOW, March 14 (Reuters) - Russia’s Deposit Insurance Agency (DIA), a vehicle used by the central bank until last year to rehabilitate struggling banks, increased its bailout to Peresvet bank by more than 30 billion roubles ($527 million), the DIA’s annual report showed on Wednesday.

The Russian Regional Development Bank (RRDB), owned by oil producer Rosneft, took over Peresvet last year via a bail-in. Peresvet, one of Russia’s top 50 lenders at the time, was controlled by the Russian Orthodox Church.

Under previous domestic bailout procedures, the central bank provided funds to banks taking over peers to rehabilitate them. The scheme was ended last year but still operates for banks that made such takeovers before the change.

In 2017, the central bank lent RRDB 66.7 billion roubles via DIA in a loan with a favourable interest rate to help Peresvet. Peresvet got a further 69.7 billion roubles from debtors who agreed to convert their funds into subordinated bonds.

According to DIA’s annual report released on Wednesday, however, the agency has spent a total of 99.8 billion roubles on helping Peresvet. Rosneft and DIA did not reply to Reuters requests for comment, and RRDB declined to comment.

RRDB’s annual report last week showed that over 80 percent of the loans issued by Peresvet - worth 138 billion roubles - could potentially be written off.

Since the scheme involving DIA was aborted last year, the central bank has taken over three major private banks via bailouts - Otkritie, B&N and Promsvyazbank - and expects to spend a combined total of more than 1 trillion roubles to rehabilitate them. ($1 = 56.9648 roubles) (Reporting by Tatiana Voronova Writing by Katya Golubkova Editing by Hugh Lawson)

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