OREANDA-NEWS  On 13 November was announced, that MDM Bank became one of three banks and the first private Russian bank to sign an agreement with the Central Bank of Russia (CBR) guaranteeing partial compensation for losses on interbank lending transactions.

The CBR’s selection criteria were: credit ratings of at least BB from Standard & Poor’s and Fitch Ratings, or Ba1 from Moody’s, as well as equity capital of at least RUB 30 bln.

In the agreement, the CBR agrees to place a compensatory deposit with MDM Bank in the event of repayment being delayed by an MDM Bank interbank counterparty. In the event of this interbank counterparty losing its banking license, MDM Bank will have the right to draw money from this deposit.

MDM Bank CFO Vadim Sorokin said, “As one of the largest banks in Russia and one of the backbones of the Russian banking system, MDM Bank plays an important role in restoring the health of the country’s financial system. This agreement is extremely important for us, as it enables the Bank to work more actively with its partners in the banking industry, and will help to stimulate lending to the real economy.”