OREANDA-NEWS. December 13, 2011. Today the Board of Directors of the State Corporation “Deposit Insurance Agency” (DIA) held its regular meeting. According to the Russian Federation Government proposal, acting Finance Minister, Anton Siluanov, was elected DIA Board Chairman.

The meeting approved Regulation on Investing DIA Temporary Idle Funds, which was developed taking into account amendments incorporated into the Federal law “On Non-commercial Organizations”, and published by the Finance Ministry and the Russian Federation Government draft resolution “On Investing Temporary Idle Funds of State Corporations, State-Owned Companies”. The document stipulates conditions and procedures for investing DIA temporary idle funds, procedures for concluding investment transactions, as well rules and control mechanisms to be utilized in this area.

The Board of Directors approved corporate key performance indicators for DIA as well as key personal performance indicators for DIA officials for the year 2012. On the whole they correspond to the current year key performance indicators, and, as previously, are based on efficiency assessment criteria for: deposit insurance system operation, receivership activities, as well as implementation of measures aimed at bank bankruptcy prevention, and temporary idle funds investment profitability. However a number of clarifications were incorporated, which are aimed at enhancing requirements to DIA operations. Specifically, the share of banks should be taken into consideration where insured deposit reimbursements began not in 14 days, but only in 12 business days after the insurance event occurrence, etc.

The Board meeting considered information on the results of investing in the third quarter of 2011 DIF resources and funds that were not temporary used for implementing plans of DIA participation in bank bankruptcy prevention. The DIA income during 9 months reached RUR 16.5 billion, including income from investing DIF resources – RUR 8.3 billion. The yield of DIA funds investment during 9 months of the current year was 4.4% per annum taking into account securities revaluation, and – 7.8% per annum without the revaluation.

The Board members took into consideration information on DIA’s bank bankruptcy prevention activities and the use of the Russian Federation’s property contribution funds for implementing the above measures in September-October 2011. As of November 1, 2011 DIA participated in financial rehabilitation of seven banks. The main events of the reported period were: review by the Bank of Russia’s Committee on Banking Supervision reports on the rehabilitation completion for “CB “Gubernsky” bank (OAO) and OAO “Gubernsky bank “Tarkhany”, as well as on completion of consolidation by ZAO VTB Debt Centre of the “Bank of Moscow”’s shares as stipulated in the financial rehabilitation plan. The Bank of Moscow was also provided financial assistance in the form of RUR 294.8 billion loan from the Bank of Russia funds.

During the reported period investors and rehabilitated banks repaid borrowed funds according to the principal and accrued interest repayment schedules. As of November 1, 2011 RUR 83 billion were repaid in principal and RUR 24.7 billion in accrued interest for the use of borrowed funds. The remaining obligation amount to DIA in relation to all rehabilitation projects (including assets purchased and received by DIA at the expense of borrowed loans repayment) reached RUR 558.1 billion, of which RUR 363.5 billion were funded at the expense of the Bank of Russia’s resources, and RUR 194.6 billion – at the expense of the Russian Federation’s property contribution funds.

DIA Board approved transfer of shares of OAO Rostelecom to the Russian Federation Treasury at the expense of reducing the Russian Federation’s property contribution into DIA property by RUR 50.278 billion. The stock was purchased by DIA during KIT Finance Investment Bank (OAO) rehabilitation process.

The Board approved Procedure for purchasing goods and services by DIA, which was developed in accordance with the Federal Law due to come into force on January 1, 2012 “On Purchase of Goods and Services by Certain Types of Legal Entities”.

The Board of Directors approved amendments to the Procedure of selecting agent banks on competition basis. The amendments are aimed at enhancing protection of depositors and quality of services provided to them; improving competition among accredited banks; simplifying procedure for auction preparation to reduce the timing of commencement insured deposit reimbursement payouts.
 The Board members approved DIA estimate of expenses for 2012, and took into consideration Internal Audit Service report on fulfillment its operational plan in the second half of 2011. The Board also approved the Internal Audit Service operational plan for the first half of 2012, and considered other issues related to DIA operation.