I love the names of Russian banks, nearly all of them fronts for the global machinations of the Kremlin, its oligarchs, and their minions.
“Mezhtopenergobank (rated among the country’s top hundred banks in terms of assets) has admitted it lacks liquidity. The difficulties arose because ‘negative information about the bank’s financial state’ had been making the rounds.”
Source: RBC Facebook News Feed
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July 2, 2017
Mezhtopenergobank PJSC reports difficulties in completing transactions due to lack of available liquidity
Mezhtopenergobank PJSC, a commercial interregional fuel and energy bank, reports difficulties in completing transactions due to a lack of available liquidity.
The bank’s financial condition has become less stable due to a number of factors caused by negative market conditions, in particular, in the construction sector. A reduction in profits and an increase in the volume of overdue debts have also resulted from the refusal of major borrowers to fulfill their obligations. In addition to the need to generate significant reserves for problem loans, as required by the supervising authority, the postponement of the scheduled refinancing of a number of client projects and the revision and tightening of the repayment schedule by the Small and Medium Enterprises Bank (SME Bank) have also been negative factors in the bank’s business.
Despite the worsening of a number of financial indicators, the bank was fulfilling client requests in a timely manner, maintaining liquidity at the required level, until last week. The bank’s operations also continued to generate a stable income.
The rapid loss of liquidity was triggered by the vigorous dissemination of negative information about the bank’s financial condition, which resulted in a sharp increase in the number of client withdrawal requests. Consequently, the load on information systems increased. They could not handle the critical volume of requests, which led to failures and affected the speed and possibility of completing transactions. Nevertheless, until July 2, the bank continued to perform transactions at its offices, via remote banking, and through ATMs.
The bank reminds its clients that all funds in accounts are fully accounted for in the bank’s information systems, balance sheets, and mandatory registers, despite the fact that the ability to dispose of these funds is currently impeded. Mezhtopenergobank PJSC is a participant of the Deposit Insurance System and has insured all funds in the accounts, cards, and deposits of private individuals and individual entrepreneurs in the amounts stipulated by law.
We would also remind borrowers and co-signatories that all payments under current obligations to the bank will be received and processed as usual, and must be sent to Mezhtopenergobank PJSC by the due dates, as stipulated in agreements.
Remote client services are operating in informational mode. Clients will have full access to bank account balances, transaction records, and electronic statements.
Customers and co-signatories will be informed about further actions as additional information becomes available.
Translated by the Russian Reader