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. Last Updated: 07/27/2016

Inkom Records 1998 Loss

Inkombank, Russia's No. 2 bank in assets before the August crisis, posted losses of $355 million last year and hopes to start paying back private depositors within weeks, Inkombank President Igor Kurlanov said Tuesday.

The bank, which has previously promised and failed to reimburse depositors, once again does not have the money to follow through with its plans, analysts said. Inkombank had its license revoked Oct. 29 and a bankruptcy hearing is scheduled for March 30.

In addition to its 1998 losses, calculated under international accounting standards, Inkombank accumulated about $3.2 billion in debts, Inkombank officials said. The bank owes $349 million to private depositors, $1 billion to foreign and Russian corporate clients, $1.2 billion to Western investors in forward contracts and $643 million to the government.

The debt, a large portion of which is in rubles, is calculated at 16.33 rubles to the U.S. dollar, the official exchange rate on the day the bank lost its license.

Vladimir Groshev, head of Inkombank's supervisory board, said the bank has enough assets to cover its liabilities but needs time "to work with the assets in peace." Bank officials did not reveal the value of Inkombank's assets.

The Rating Information Agency, which tracks Russian banks, puts Inkombank's assets as of November at 43 billion rubles ($2.7 billion).

Kurlanov said private depositors are the bank's priority and they will be repaid by May. Debts to the state will be paid from 2000 to 2003 and to corporate clients from 2000 to 2005. Forwards will be paid from 2005 to 2010.