Financing of the Agency's Activity

Current operating expenses of the Agency in 2008 were executed in accordance with the estimate approved by the Agency Board of Directors decision dated December 26, 2007 as amended by the Agency Board of Directors decision dated October 30, 2008.

The total amount of actual general administrative expenses reached 631.9 million rubles over the reporting period that corresponds to 98.2% (643.2 million rubles) of the approved estimate of expenditure.

Expenditure of funds for the Agency operations was accomplished in accordance with the By-law on financing expenses and use of the profit of the state corporation Deposit Insurance Agency approved by the Board of Directors decision dated September 15, 2005, at the expense of earnings received from investment of the Russian Federation property contribution funds. Investment of the named temporary idle monetary resources was performed according to the limits, established by the By-law on investment of temporary idle monetary resources (except for resources of the mandatory deposit insurance fund), approved by the Board of Directors decision dated February 3, 2004.

In accordance with the Federal Law No.175-FZ dated 27 October 2008 “On Additional Measures to Strengthen Banking System Stability for the Period through December 31, 2011” the Agency received 200 billion rubles for bankruptcy prevention activity on its account on November 24, 2008.

As of January 1, 2009, 25.4 billion rubles of these funds were used for financing bank bankruptcy prevention measures, 135.2 billion rubles were invested in profitable financial instruments (including 100 billion rubles in deposits with the Bank of Russia) with average yield to redemption 8.4% per annum. Other funds were on the accounts.