MOSCOW — The official receiver of Sodbiznesbank has submitted a claim to the arbitration court of Moscow for declaring the bank insolvent (bankrupt). The press service of the Central Bank of Russia has released a statement to explain the situation.

The arbitration court of Moscow made the decision on compulsory liquidation of Sodbiznesbank in summer of 2004, whereas liquidation actually started in October 2004 only. The proceedings revealed that Sodbiznesbank's violations included money laundering, and its financial reports were highly questionable.
Should the arbitration court now declare the bank insolvent, a bankruptcy administrator will perform preliminary payments with 70 percent of the funds available at the bank, and then submit documents to the Bank of Russia within a period of 10 days for the size of further payments to be calculated. The Central Bank's decision is to ensue within a month upon the receipt of documents.