Deposit Guarantee Fund starts refunding depositors in subsidiary of Russia's Sberbank

17 August, 10:01 PM

The "subsidiary" of the Russian Sberbank changed its name to the International Development Bank (Photo:IR Bank via Facebook)

The Deposit Guarantee Fund has begun making payments to depositors of the Ukrainian subsidiary of Russia’s Sberbank, according to a press release posted on the fund’s website on Aug. 17.

The state financial administrator, the Deposit Guarantee Fund, has begun to meet the demands of seventh-tier creditors of the Ukrainian subsidiary, the International Reserve Bank (MR Bank), the press release reads.

These are legal entities that are clients of the bank but that are not related to the bank.

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They are owed UAH 277.1 million ($6.15 million).

"The management and realization of JSC MR Bank's assets allowed the Deposit Guarantee Fund to accumulate in the bank's accounts an amount sufficient to satisfy the demands of the creditors of the sixth tier and to start the settlement with the creditors of the seventh tier of the bank," the fund's message says.

The relevant decision, No. 602, was adopted by the executive directorate of the fund on Aug. 15, 2022.

In total, UAH 277.1 million will be allotted to satisfy the demands of 54,986 creditors of the seventh tier, which is 10% of the total amount outstanding to seventh tier clients.

Creditors' claims are satisfied in non-cash form by transferring funds to creditors' accounts.

It was previously reported that Sberbank of Russia filed a lawsuit with the Moscow Arbitration Court demanding to recover RUR 23.4 billion ($385 million) from its former Ukrainian subsidiary, MR Bank.

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