Growing Russian rumblings:
Yukos:
biz.yahoo.com
and Guta-Bank Officially Joins Ranks of Crisis Banks
Created: 06.07.2004 10:50 MSK (GMT +3), Updated: 15:29 MSK,
MosNews.com
Medium-sized Guta Bank made an announcement today that it is uncapable of making current payments on transactions and of paying out deposits to personal clients. The bank joins the ranks of CreditTrust, Paveletsky, Commercial Savings Bank and several others, who have suffered from a shortage of liquidity and were forced to cease their operations.
On Monday, July 5, the bank's clients were unable to withdraw money from a number of the bank's ATMs, and several independent sources told the internet newspaper Gazeta.Ru that last Thursday, July 1, Guta Bank failed to make payments on deals worth 500 million rubles ($17.2 million).
An unnamed dealer with one of Russia's largest banks told the internet newspaper that the situation in Guta Bank is lamentable, that all other banks closed their limits for this bank on the inter-bank loan market and that no payments have been going through since Thursday. The analysts say that the market is full of Guta's bills of collections, which cannot be sold at any price, because nobody wants to buy them.
The market is sure that the bank is suffering from serious shortage of liquidity, especially after large, state-owned Vneshtorgbank decided against crediting Guta Group for a sum of $400 million.
The market participants say that the situation is nearing the stage of bankruptcy and the recall of its banking license. The analysts worry that the bank's owners will do everything possible in order to withdraw their assets ahead of time, and the victims of yet another bank crisis will be private clients. The number of Guta Bank's clients is estimated between 400,000 and 500,000.
The press service of Guta Group, which runs Guta Bank, until the last moment claimed that there is absolutely no problem to worry about, that the bank is working, making payments and giving out credits. The press service stressed that the information circulating in the banking community is no more than rumors. Market experts are saying the opposite. “The bank is half dead already and it will drag a number of credit institutions along with it,” say analysts.
Adding substance to those views today, news agencies reported that Guta Bank's Moscow branch offices were closed Tuesday and a majority of the bank's staff was sent on compulsory vacation. The announcement on the doors of one of the offices told the bank's clients that no payments on deposits can be made. |
