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Bank of Russia Performs Special Audit of VTB’s Handling of Problem Debts

RBC Daily

RCB daily has come into possession of [internal] correspondence among Bank of Russia employees in late 2010-early 2011. In it, the Central Bank employees shared concerns over the fact that VTB was funding the company VTB Debt Center via yet another company within the Group – Russian Commercial Bank (RCB) – without previously setting aside a relevant reserve.

The Bank of Russia internal communications estimated the amount of offers presented by VTB in favor of RCB. The conclusions were based on the records of sessions of the bank’s Credit Committee and Management Board as of December 8, 2010 (see Table on page 7). According to the data, the total amount of offers made in favor of RCB stood at USD 5.166 billion.

Original article in Russian is available here.

Translated article is available here.