Deposit Insurance Agency Held Board of Directors Meeting
OREANDA-NEWS. June 29, 2010. Today State Corporation “Deposit Insurance Agency” (DIA) held its regular Board of Directors meeting chaired by Sergei Ignatiev, the Bank of Russia Chairman.
The meeting listened to the information about measures taken by DIA in February-May 2010 aimed at banks’ bankruptcy prevention, and about use by the Agency of funds of the Russian Federation property contribution to implement the above measures. In 14 banks DIA continued its involvement in their financial rehabilitation. The main actions were aimed at reducing the number of restructured banks’ problem assets, and their reorganization in forms of merger with other banks – new investors or other rehabilitated banks. During the reported period measures aimed at financial rehabilitation of JSC GB “Nizhny Novgorod” were completed.
In total, for bank restructuring purposes the Agency allocated RUR 329.2 billion (of which the Bank of Russia funds were RUR 190.3 billion, and the RF property contribution funds – RUR 138.9 billion). As of June 1, 2010, in relation to loans provided by the Agency and restructured banks’ assets purchased by DIA – the Agency received as debt principal repayment RUR 17.62 billion. Besides this it received interest payments for the use of granted loans amounting to RUR 13.52 billion.
The Board members took into consideration information concerning investment of Mandatory Deposit Insurance Fund (DIF) resources in the first quarter of 2010, as well as about investment of funds that are temporary not used for implementation of plans of DIA’s participation in bank bankruptcy prevention. In connection with partial markets restoration DIA carried out more active policies of DIF resources investments – increasing the share of investments in corporate bonds of highly reliable corporate issuers. The average weighted yield of theAgency’s investments including revaluation of securities was 24.7% per annum.
In connection with the establishment of the North-Caucasus Federal District according to the Russian Federation President’s Decree, DIA’s Board of Directors made a decision to establish the Agency’s representative office in this district. The basic goals and objectives of this representative office will be: information and clarification of DIA main goals; interaction with governments of the Russian Federation constituent entities and municipal bodies, the Bank of Russia territorial branches as well as DIS member banks.
The Board of Directors took into consideration information about progress in development of DIA’s Strategy, and heard the report of Internal Audit Service on execution of its plan for the first half of 2010. The Board approved the activities plan of this Service for the second half of the year.