OREANDA-NEWS. June 29, 2011. Regular meeting of the State Corporation “Deposit Insurance Agency” (DIA) Board of Directors was held. It was chaired by Deputy Chairman of the Russian Federation Government and Minister of Finance of the Russian Federation, Alexei Kudrin.

The Board members took into consideration information about investment of the Mandatory Deposit Insurance Fund’s (DIF) resources during the first quarter of 2011, as well as investment of temporary idle funds designated for implementing plans of DIA participation in preventing bank bankruptcies. Taking into account uncertainty on financial markets during the reported period the Agency conducted conservative investment policies, maintaining instruments’ shares at the established levels. The DIF resources and temporary idle funds investment yield in the first quarter of 2011 taking into account securities revaluation was 10.44% per annum, while the net profit reached RUR 2.2 billion.

The Board members heard information about implemented by DIA measures in March-May 2011 aimed at bank bankruptcy prevention, as well as about the use of the Russian Federation property contribution funds for implementing the above measures. During the reported period DIA continued to participate in financial rehabilitation of 11 banks. In one of them – “Bank24.ru” - financial rehabilitation measures were completed. Moreover, merger of “Severnaya Kazna” bank with Alfa-Bank was practically accomplished.

During the reported period investors and rehabilitated banks repaid the borrowed funds in accordance with principal amount and interest repayment schedule. As of June 1, 2011 RUR 50.5 billion in principal amount and RUR 21.6 billion in accrued interest were repaid for the use of the borrowed funds. The major part of the above resources was appropriated to repay loans provided by the Bank of Russia for financial rehabilitation purposes. The remaining part of debt owed to DIA with regard to all rehabilitation projects (including in relation to assets purchased or received by the Agency as loan repayment) amounts to RUR 295.7 billion, of which RUR 99.5 billion were provided at the expense of the Bank of Russia funds, and RUR 196.5 billion – at the expense of the Russian Federation property contribution to DIA.

 The Board of Directors approved the results of the open competition to select an audit company for auditing DIA annual financial statements and the use of DIF resources in 2011. The competition winner was “Financial and Accounting Consultants” (FBK). The Board meeting also listened to the Internal Audit Service report on its work plan fulfillment during the first six months of 2011, and the work plan for the second half of the current year was approved for the above Service.