GUTA-Bank to be purchased at symbolic price of 1 million roubles

GUTA-Bank which previously failed to execute its obligations to customers, is to be sold to state-owned Vneshtorgbank at 1 million roubles.
According to the agreement signed on July 16, Vneshtorgbank will purchase 86 per cent of GUTA-Bank shares, said Vneshtorgbang President and Chairman of the Board Andrei Kostin.

From July 19, GUTA-Bank has new Chairman of the Board – Mikhail Kuzovlev (previously – Vice President of Vneshtorgbank).

”Purchasing GUTA-Bank at almost a symbolic price, GUTA-Bank hopes to restore its operations as soon as possible”, said Mr. Kostin. Vneshtorgbank will bear all GUTA-Bank obligations.

According to Mr. Kostin, a part of 700 million roubles deposit of Central Bank in Vneshtorgbank will be directed to increasing liquidity of GUTA-Bank, and the rest of the deposit will be spent on conducting banking operations of Vneshtorgbank and GUTA-Bank (mainly giving loans to customers).

Mr. Kostin also says that some of GUTA-Bank assets are collateral  for this deal, and if the terms of the deal are worse than Vneshtorgbank expects, it will take over these assets. Also, the insurance company belonging to Vneshtorgbank, and GUTA-strakhovanie insurance company will be merged.

President of Vneshtorgbank said that 15 branches of GUTA-Bank in Moscow region will be “good asset for Vneshtorgbank”.

GUTA-Bank stopped paying its customers on July 6, 2004, and then there was an announcement on negotiations on Vneshtorgbank’s purchasing GUTA-Bank assets. In June 2004, more than 10 billion roubles was taken out of GUTA-Bank, it was almost 1/3 of GUTA-Bank net assets. 

CUTA-Bank which previously failed to execute its obligations to customers, is to be sold to state-owned Vneshtorgbank at 1 million roubles.

According to the agreement signed on July 16, Vneshtorgbank will purchase 86 per cent of GUTA-Bank shares on July 16, 2004, said Vneshtorgbang President and Cahairman of the Board Andrei Kostin.

From July 19, GUTA-Bank has new Chairman of the Board – Mikhail Kuzovlev (previously – Vice President of Vneshtorgbank).

”Purchasing GUTA-Bank at almost a symbolic price, GUTA-Bank hopes to restore its operations as soon as possible”, said Mr. Kostin. Vneshtorgbank will bear all GUTA-Bank obligations.

According to Mr. Kostin, a part of 700 million roubles deposit of Central Bank in Vneshtorgbank will be directed to increasing liquidity of GUTA-Bank, and the rest of the deposit will be spent on conducting banking operations of Vneshtorgbank and GUTA-Bank (mainly giving loans to customers).

Mr. Kostin also says that some of GUTA-Bank assets are collateral  for this deal, and if the terms of the deal are worse than Vneshtorgbank expects, it will take over these assets. Also, the insurance company belonging to Vneshtorgbank, and GUTA-strakhovanie insurance company will be merged.

President of Vneshtorgbank said that 15 branches of GUTA-Bank in Moscow region will be “good asset for Vneshtorgbank”.

GUTA-Bank stopped paying its customers on July 6, 2004, and then there was an announcement on negotiations on Vneshtorgbank’s purchasing GUTA-Bank assets. In June 2004, more than 10 billion roubles was taken out of GUTA-Bank, it was almost 1/3 of GUTA-Bank net assets.