On 29 October 2009, the Government adopted Resolution No. 853 on the procedure for increasing banks' capitalisation by the exchange of preferred shares for federal loan bonds. The Resolution will enter into force seven days after the date of its official publication.

The Resolution follows Federal Law No. 181-FZ "On the use of state securities of the Russian Federation for increasing banks' capitalisation," dated 18 July 2009. It sets out the procedures for a bank sending a proposal to increase its capitalisation, and for the state in deciding on this proposal.

The bank, which must satisfy certain conditions, has to submit the proposal (in the form set out in the Resolution) to the Ministry of Finance and the Central Bank. The proposal must be accompanied by a business plan and the bank's approval of a decision that bonus payments to the bank's top management will be cancelled if it fails to pay the state the dividends on the preferred shares.

Once the proposal is accepted and the share issuance is state registered, the bank must submit a signed agreement for the exchange of its preferred shares for federal loan bonds (in the form set in the Resolution) to the Ministry of Finance by no later than 10 December 2010.