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Post: Putin signed the law on the restructuring of banks under sanctions

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Building of the Central Bank of the Russian Federation. Archive photo

President Vladimir Putin signed a law setting out the features of the restructuring of banks

MOSCOW, July 14 – RIA Novosti. Russian President Vladimir Putin signed a law detailing the restructuring of banks under sanctions from countries that are not friendly to Russia. The document was published on the official legal information portal and entered into force.

The law allows sanctioned credit institutions to reorganize as a result of the restrictive measures introduced to transfer a new legal entity, which is not a credit institution, with “frozen” assets. At the same time, all liabilities to such restructured banks on behalf of foreign creditors can be met only at the expense of the resident legal entity and its assets.

Under the law, sanctioned banks will have the right to make such reorganization up to and including July 1, 2023.

Creditors of the bank, both legal entities and natural persons, in connection with such reorganization, shall have the right to demand in writing the premature fulfillment of its obligations by the credit institution and, if such fulfillment is impossible, to terminate its obligations and compensate for losses.

At the same time, in connection with the reorganization of a credit institution into division, foreign creditors from unfriendly countries will not be entitled to demand early performance or termination of the relevant obligations and compensation for related losses.

In addition, up to and including 1 July 2023, a credit institution’s equity (capital) may be reduced below the authorized capital level without taking measures to prevent bankruptcy, financial recovery or liquidation following the results of the reporting month.

Source: Ria

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