April 18, 2019 / 11:28 AM / 10 months ago

Russia's Vostochny Bank adds $184 mln to provisions

MOSCOW, April 18 (Reuters) - Russia’s Vostochny Bank said on Thursday it had set aside 11.8 billion roubles ($184 million) in provisions against possible bad loans at the central bank’s request.

The central bank ordered Vostochny Bank, Russia’s 32th largest lender by assets, to cap its provisions following an audit last year.

The bank, majority-owned by private equity fund Baring Vostok Capital Partners, said it had been able to fulfil the central bank’s request ahead of a 2020 deadline because of a “profitable business model and efficient capital recovery actions.”

It added that it no longer had any obligations toward the central bank.

The central bank did not reply to a request for comment.

Vostochny Bank has been at the heart of a commercial dispute that has rattled the business community and sparked fears it could have a chilling effect on the investment climate in Russia.

U.S. investor Michael Calvey, the founder of the Baring Vostok private equity group, and some of his associates were detained in February on suspicion of defrauding Vostochny Bank shareholders, charges they have denied.

Calvey was released last week and placed under house arrest, although three of his associates remain in detention.

$1 = 64.0553 roubles Reporting by Tatiana Voronova; Writing by Gabrielle Tétrault-Farber; Editing by Mark Potter

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