June 29, 2018 / 2:40 PM / 24 days ago

UPDATE 1-Russian Central Bank to deposit $2.8 bln at Otkritie, Trust and Rost banks

(Adds details, background)

MOSCOW, June 29 (Reuters) - Russia’s central bank said on Friday it would deposit a total of 174.2 billion roubles ($2.78 billion) at three bailed-out banks: Otkritie, Trust and Rost.

The central bank said it would deposit 73.8 billion roubles at Trust Bank and 37.1 billion roubles at Rost Bank. Another 63.3 billion roubles would be deposited at Otkritie.

The deposits are part of a plan to create a ‘bad assets bank’ out of Trust Bank which will take on the bad and non-performing assets of Otkritie and B&N banks, the Central Bank said.

Two sources familiar with discussions told Reuters earlier this week that the Central Bank had to provide over 100 billion roubles to Trust Bank under the ‘bad bank’ creation process but that discussions over the final amount were under way.

On Friday, the central bank said separately that it decided to boost capital of Otkritie by buying its additional share issue worth another 42.7 billion roubles, so the bank could deal with its non-performing assets.

Central Bank governor Elvira Nabiullina told Reuters this month the bank had already injected 758.3 billion roubles to boost the capital of Otkritie, B&N and Promsvyazbank, while another 1.86 trillion roubles were provided for deposits.

Russia’s Central Bank has said that the bailout process, which requires printing fresh cash, will not affect its monetary policy as the funds are distributed via a specially established Fund for Consolidation of Banking Sector. ($1 = 62.7000 roubles) (Reporting by Dasha Korsunskaya and Tanya Voronova; writing by Maria Kiselyova/Katya Golubkova, editing by Louise Heavens and Jon Boyle)

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