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VLADIKAVKAZ, October 14 (Itar-Tass) - The Regional Development Bank (RDB) in the Russian North Caucasus Republic of North Ossetia has been placed temporary administration by the Deposit Insurance Agency (DIA) and the National Bank of the Republic, the acting chairman of the RDB’s Board, Vadim Tsarakov, said on Monday.
“The RDB licence has been revoked today. The bank does not exist anymore, which means the occurrence of an insured event. We will start insurance payments to depositors in two weeks, following orders from the Republic’s head to minimize losses for the retail clients,” Tsarakov said.
The major cause for the RDB’s bankruptcy was a shortage cash, he explained.
“I cannot say anything about the reasons for this shortage so far. Law-enforcement authorities are currently working on it,” he added.
Yaroslav Gudkov, head of the Economic Security and Anti-Corruption Department of the Interior Ministry in North Ossetia, said the cash shortage in the bank vault amounted to 1.272 billion roubles and about 25 million dollars at the moment of the inspection by the Interior Ministry.
A criminal case has been initiated against the bank's former CEO, Sergei Doyev, who is accused of embezzling more than 300 million roubles (9.3 million dollars) in government funds.
“We will conduct an audit together with the National Bank to see where the money had gone, including the money from the bank accounts,” Gudkov said. It is unclear yet when the investigation will be over.