“Implementation of the Bail-in Mechanism” — Comments of Oleg Ganyushin for the Legal Information Agency
Comments of Oleg Ganyushin, a lawyer at Prime Advice Saint Petersburg Law Firm:
The Bail-in mechanism is successfully used in several countries and on the whole is aimed at enhancing protection of rights of depositors and the stability of the banking system. That is why we can only welcome implementation of this mechanism in our legislation. However the legislator should be extremely careful with wording in case of such a concept: the limitation of rights expressed as deposit conversion must not be selective and must not result in benefits for certain bank's creditors at the expense of others influenced by the bail-in. It would contradict the meaning of the bankruptcy law.