. Last Updated: 07/27/2016

Chara Cupboard Bare

Novaya Gazeta speaks with international economist Sergei Yoannesyan concerning the situation with the failed Chara Bank [a bank with a client base in the intelligentsia that closed in 1994.]

We will ask the question: In general, is the return of money to investors realistic?

For the year-and-a-half that led up to the bank ceasing operations, its license was not taken away. Documents indicate that time was spent constructing and reconstructing two buildings. ... It was natural, it was declared, that these buildings will work for investors. Now it has been determined: The buildings belong not to Chara, but to the Slavyansky Dom joint-stock company. Chara Bank's president, Mr. Fadeyev, and his deputy, Mr. Stanislavsky, hold 88 percent of the shares in Slavyansky Dom. Clearly, these people were interested only that the buildings were transfered over to their ownership.

Strikingly, for two years [following its collapse] the bank's leadership has not written one statement concerning the return of debt, but concluded two deals with Slavyansky Dom and the firm Iskusstvo i Kultura in which Chara acted in the role of a pawn broker. At the end of 1994, Fadeyev showed a list of issued and unreturned credits at an investors' meeting. From this sum remained a pathetic percentage in the reserve fund. The remaining [funds] have vanished.

Novaya Gazeta, Nov. 19