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. Last Updated: 07/27/2016

Inkom Denies Need for Intervention

Inkombank management said Thursday it had seen considerable withdrawals by depositors after Russian media rumors of liquidity problems, but added it does not need a stabilization credit from the Central Bank.

Inkombank President Vladimir Vinogradov told a news conference private depositors had withdrawn 160 billion rubles ($31 million) since the rumors started earlier this month. Bank officials earlier hinted at other possible losses but have provided no figures.

Inkombank took a short-term credit Monday of 150 billion rubles in a Central Bank Lombard auction, but Vinogradov said the bank has not applied to the Central Bank for help.

Inkombank had assets of 19.8 trillion rubles as of July 1. It is the second largest Russian bank in terms of household deposits and has 270,000 private clients, Vinogradov said.

Inkombank is currently awaiting final approval from the Central Bank to issue level-one American Depositary Receipts, or ADRs, backed by at least $15 million of the bank's stock, said Rafael Nagapetiants, director of international banking at Inkombank. ADRs allow U.S. investors to buy shares through certificates issued by a depositary bank.

The bank has said it expects to start the new offering by August or September.

Vinogradov explicitly linked media reports of financial problems at Inkombank with the decision of a Moscow arbitration court last month to declare invalid a government loans-for-shares auction for the Sibneft oil company.