Rus News Journal

MDM - bank has prepared fund

For management of problem actives

Agency Fitch has lowered a long-term rating of a default of the emitter of MDM - bank. The forecast on a rating “ negative “ as the agency is disturbed by volume of bad debts of bank. The credit organisation expects to reduce problem debts at the expense of recently created fund. Will operate fund as natives of MDM - bank, and independent managers.

the Long-term rating of a default of the emitter of MDM - bank from Fitch is lowered to BB - c BB, the forecast — “ negative “. The rating agency explains the actions by that the bank poorly spends work on collecting of problem actives that has led to considerable growth of deductions in reserves last ­ year.

As they say in message Fitch, support by the capital from the shareholder and strategy new a top - management will help to stabilise quality of actives.

the Bank has already informed on plans on transfer of problem credits to the special fund shareholders of MDM - bank will be which founders. The bank expects positive effect for the capital which will be shown in process of transfer of assets in fund within 2012.

the Agency warns that bank ratings can be lowered, if sale of actives does not take place or will not provide to bank of essential support of the capital. Experts Fitch mark also the positive moments in bank activity. So, the relation of credits to deposits has improved to 116 % on the end of 2011 in comparison from 144 % on the end of 2009, level of problem credits in retail was reduced to 10,3 % of a portfolio from 18,2 % in the beginning of 2011.

the Most part of problem actives will be transferred in the special fund created by shareholders of MDM - bank, chairman of board of directors Oleg Vjugin has confirmed daily.

“ This procedure it is planned to finish till the end of the year then delay level on MSFO at bank will make no more than 5 %, — has noted g - n Vjugin. — the situation with the capital as on the actives removed from balance it will be possible to restore ­ reserves " Will improve also­;.

According to the head of the board of directors, the bad debts which have remained on balance — this so-called heritage of crisis 2008 — 2009. “ after crisis the bank began more conservatively and vzveshenno to estimate borrowers, therefore under postcrisis credits delay is minimum “ — Oleg Vjugin has informed.

delay Level in 5 % MSFO now is considered for the Russian banks quite comprehensible, analyst BKS Julia Safarbakova believes. “ Hardly above 2 % delay at Alpha bank which is famous for effective work on return of debts. There are also other banks with problem actives less than 5 % of a portfolio, but for MDM - bank similar level will be quite comfortable “ — considers g - zha Safarbakova.