The government adopts a decision regarding JSCB KYIV PJSC, which would allow it to fully address the problems encountered by its clients (depositors and other creditors) and protect their funds (savings) through the disposition of all assets and liabilities held by JSCB KYIV PJSC to another state-owned bank.
The Ministry of Finance of Ukraine communicates that at its meeting held on February 11, 2015, the Government of Ukraine adopted a decision regarding the future fate of Public Joint-Stock Company "Joint-Stock Commercial Bank "KYIV" (hereinafter - JSCB KYIV PJSC), which would allow it to fully address the problems encountered by its depositors and other creditors.
The Government of Ukraine, at the suggestion of the Expert Council on State Participation in the Authorized Capital of Ukrainian Banks chaired by the Minister of Finance of Ukraine, has adopted a decision under which JSCB KYIV PJSC will be removed from the market through the disposition of all its assets and liabilities to the state-owned Public Joint-Stock Company Joint-Stock Bank "Ukrgasbank" (hereinafter – Ukrgasbank JSB).
Thus, a special procedure will be applied to JSCB KYIV PJSC, as prescribed by Articles 39 and 411 of the Law of Ukraine On Household Deposit Guarantee Scheme, which would allow the bank to be removed from the market, while ensuring the transfer of deposits held by deposits to another bank with a state stake.
Following the disposition of liabilities held by JSCB KYIV PJSC to Ukrgasbank JSB, both individual depositors and corporate ones (including trade unions) will have full access to their accounts (including access to deposits exceeding UAH 200 thousand) and will be able to operate their accounts freely.
The Deposit Guarantee Fund will ensure the operational implementation of the Government's decision by appointing a provisional administration to JSCB KYIV PJSC, taking an inventory, and establishing records of assets and liabilities, etc.
"The state is a responsible owner that takes the necessary measures to safeguard funds held by depositors. At the same time, the state seeks to be an efficient owner. The Bank Kyiv is a small bank that has failed to emerge from the crisis. The government advocates the consolidation of its assets in the banking system, which would protect the interests of depositors, enhance banks' performance, reduce administrative expenses and boost the ability of banks to withstand present-day challenges.
The Government's decision was backed by the National Bank of Ukraine. First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk said that the National Bank of Ukraine supports efforts by the Ministry of Finance of Ukraine as a bona fide shareholder. He also noted: "The Government's decision regarding JSCB KYIV PJSC represents a positive signal for the society and helps boost confidence in banks with a state stake and the entire banking system.
In his turn, Managing Director of the Deposit Guarantee Fund Kostyantyn Vorushylin pledged that the Deposit Guarantee Fund would exert all possible efforts to ensure the immediate implementation of the Government's decision to remove JSCB KYIV PJSC from the market through the disposition of all assets and liabilities held by this bank to Ukrgasbank JSB. "We pledge all possible efforts to restore the rights of depositors and other creditors of JSCB KYIV PJSC to receive their funds through the branch offices of Ukrgasbank JSB within the shortest possible time frame," he added.
For reference. JSCB KYIV PJSC was recapitalized by the state in 2009. The recapitalization costs amounted to UAH 3.565 billion. The government was forced to participate in the recapitalization of the bank to underpin the bank's solvency but these measures fell short of fully addressing the problems faced by the bank and putting the bank back on a sound footing.
http://www.bank.gov.ua/control/en/publish/article?art_id=14549333&cat_id=76291
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