24. 1. 2023
Prague, January 25, 2023 The exemption from sanctions
granted to Sberbank CZ by the American OFAC was extended yesterday until January 31, 2024. OFAC thus approved the insolvency trustee’s request based on actions taken in relation to the sale of Sberbank CZ's loan portfolio. The extension of the exemption is one of the main conditions for the successful settlement of the purchase agreement with Česká spořitelna, which was signed in December 2022.
Yesterday, OFAC once again extended Sberbank CZ's exemption from sanctions imposed on selected Russian banks until January 31, 2024. "I am very happy that OFAC approved our request and repeatedly extended the exemption from American sanctions.
The purchase agreement concluded with Česká spořitelna on December 16, 2022, was an important milestone in the settlement of all the bank's creditors," said JUDr. Jiřina Lužová, the insolvency trustee of Sberbank CZ, a.s. v likvidaci.
Last week the insolvency trustee held a meeting with representatives of cities and municipalities, the result of which was a promise by the Jihlava administration representative to withdraw the objections he filed regarding the election of the creditors' committee. He also promised to recommend
the same to the other municipalities, and some of them have already done so. "I appreciate the responsible approach of the cities and municipalities, which are gradually withdrawing their appeals regarding the creditors' committee. I strongly believe that following the expiration of the three-month period from the publication of the purchase agreement with Česká spořitelna in the insolvency register, the transaction will be settled successfully and the money for the sale of the Sberbank CZ loan portfolio will be paid,"added JUDr. Jiřina Lužová.
As soon as Česká spořitelna pays the agreed purchase price, the migration of Sberbank CZ's clients to Česká spořitelna will begin. If the sale is successfully concluded in April, the process of the migration is likely to be completed in the first half of the year and the settlement of the creditors in the form of a partial schedule will follow in the second half of 2023. Applying a partial schedule is legally possible if the state of the assets allows for it, which in this case should be fulfilled by the settlement of the deal with Česká spořitelna. The overall schedule will only be possible at the end of the insolvency proceedings after the publication of the final report.
Owing to the current developments in the value of Sberbank CZ's assets, it is also likely that the satisfaction of the creditors in the third group will be slightly higher than originally expected. Assuming that the sale of the loan portfolio to Česká spořitelna is settled and the interest rate on Sberbank CZ cash remains on the
current level, it can be expected that the proceeds from the sale of the loan portfolio together with the bank's available cash (including accrued interest) and the expected proceeds from the monetization of other assets of Sberbank CZ will all together be sufficient to fully satisfy the creditors in the first (GSFT) and the second (individuals and SMEs) groups. In addition, there is a high
probability of satisfying more than 95% of the creditors in the third group (regional administrations, cities, municipalities and large companies). There is even a possibility that the satisfaction rate of the creditors in the third group will be almost 100%.
Nothing has changed for credit clients of Sberbank CZ. Until the successful settlement of the sale, they continue to be obliged to repay their obligations as before.
In upcoming weeks, Sberbank CZ plans to offer for sale the corporate bonds and the rest of the loan portfolio which are
not part of the purchase agreement concluded with Česká spořitelna.
Sberbank CZ, a.s. v likvidaci