The Bank of Russia for the first time unveiled a quantitative estimate of the real financial situation of Mezhprombank made by the interim administration after the revocation of the license. Due to this it becomes clear that the regulator had in mind, speaking of high-risk bank's loan policy and misleading statements. Mezhprombank in numbers by the top management and by the regulator are the two mirror different bank that is literally with money or without.
CB published in “Vestnik Banka Rossiya” the reduced balance of Mezhprombank (MPB) by November 1, compiled by the interim administration, which has been managing the bank after the revocation of the license (October 5). This is the first formal quantitative assessment of the regulator of the real financial situation of the MPB. In a message revoking the license the Central Bank pointed to the loss of bank liquidity, high-risk lending policies, undone reserves, false statements, but the exact scale of the disaster has not been made public.
Meanwhile Mezhprombank in numbers looks as if it were two different banks - before and after the revocation of the license. According to the report of MPB on Nov. 1, its net outstanding loans (loans net of provisions) amounted to only 41 billion rubles for a total amount of the loan portfolio of about 150 billion rubles. This means that the bank reserves for possible losses on loans currently account about 110 billion rubles to 45 billion rubles that was shown in the statement of the Bank by its top management on September 1 (there is no report on October 1 at the site of the Central Bank).
"After analyzing the quality of its loan portfolio, the interim administration assessed additional bank reserves at more than 60 billion rubles," Kommersant’s source being close to the regulator, confirms. Thus, the scale of unmade provision in the bank is estimated at 140%.
As a result of accrual of reserves the equity of Mezhprombank including the authorized capital stock accounted for 25 billion rubles, became not just negative, but reached minus 30 billion rubles. We have never met such a" hole "in the banks withdrawn license, referred under our control," the first deputy director of the Deposit Insurance Agency, Valery Miroshnikov says.
In this case, the ratio of 41 billion rubles of net outstanding loans to 34 billion rubles placed in Mezhprombank by the clients seeking their return should not instill false hopes in the bank's creditors, the interlocutors of Kommersant agreed."34 billion rubles is only client funds deposited with a bank, and in fact among the creditors of the MPB there are the holders of two Eurobond of ? 200 million and $ 200 million, which is about 14 billion rubles more. And the Central Bank itself has a debt on the balance, which cannot be covered by the sale of mortgaged shipbuilding assets ("Severnaya Verf", "Baltic Shipyard" and CB "Iceberg ")", analyst of IC “Sovlink" Belenkaya reminds. In addition, there are fewer chances left to sell shipbuilding assets at an affordable price. In particular, the United Shipbuilding Corporation, which is yet the only bidder for these assets, on Wednesday made it clear that it has lost interest in the Baltic Shipyard (see Kommersant of 25 November).
Moreover, 41 billion rubles is obviously not enough to settle with all creditors of Mezhprombank, Most likely it is an overestimation of the bank assets, analysts say. "Bank's loan portfolio was merely served until the revocation of the license, and then the bank was interested in rectifying the situation; after the revocation of the license the situation with the repayment of loans will likely get even worse," Moody's analyst Elena Redko says.
Source: Kommersant № 219 (4519) on 26/11/2010