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. Last Updated: 07/27/2016

More Banks Seen Surviving Revamp

Russia's Central Bank said Friday that it had raised to more than 1,000 its estimate of the number of banks which would survive a restructuring of the crisis-hit system.

It had previously expected up to 300 banks to survive.

Central Bank chief Viktor Gerashchenko said the cost of the restructure would be 100 billion rubles ($4.2 billion), although only 10 billion rubles are allocated to a new agency set up to carry out the process.

"Our forecast that after the banking system restructuring after the crisis there will remain 250-300 banks was excessively pessimistic," Gerashchenko told the State Duma, the lower house of parliament. "A little over 1,000 banks will be left."

Gerashchenko, in a letter to Prime Minister Yevgeny Primakov published Friday in the Kommersant newspaper, said 1,032 banks out of 1,474 were financially stable, while the government should refuse to help 397 troubled banks.