2 Regional Bank Bailouts Approved

The Deposit Insurance Agency has approved bailouts for two regional banks and is reviewing the need of 10 others for similar assistance, the head of the agency, Alexander Turbanov, said Monday.

He said the Central Bank is providing the agency with loans for the bailouts at 5.5 percent interest. It will then lend this money at 6.5 percent to parties willing to invest in the struggling banks.

"In the case of two banks, the rehabilitation plan has been approved. ... The financial condition of another 10 are being reviewed at the suggestion of the Central Bank so that we can determine how to proceed," Turbanov said, declining to name them.

He added that his agency and the Central Bank are focusing on the country's 200 largest banks but are also taking into account the social and economic importance of the banks eligible for assistance.