In Ukraine, they propose to liquidate the largest bank that turned out to be bankrupt
The Deposit Guarantee Fund of Individuals believes that Delta Bank needs to be liquidated.
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This is stated in the press service of the Fund.
“The Deposit Guarantee Fund of Individuals believes that, for now, the only possible way to withdraw Delta Bank JSC from the market is “liquidation of the insolvent bank with compensation from the Fund for Guaranteeing Individuals’ Deposits.” The Fund intends to submit a corresponding proposal to the National Bank of Ukraine,” the statement says.
The Fund explained this decision by the fact that out of eight qualified investors, only two submitted competitive proposals. At the same time, one of them was not allowed to participate in the competition due to non-payment of the guarantee fee, and the proposal of the second “did not comply with the principle of least cost for the Fund.” In particular, the proposal of the potential winner provided for additional capitalization of the transition bank in the amount of UAH 3,1 billion, which was to be carried out by the Cabinet of Ministers of Ukraine.
However, the Foundation has not officially received notification of such a government decision.
According to the competition proposal, the winner planned to restructure obligations to the National Bank and state banks for a total of 10 billion UAH for 13,1 years, which did not meet with support from the bank’s creditors.
“At the Fund’s request, not a single Delta Bank creditor confirmed consent to the terms of the restructuring. Moreover, the competitive proposal provided for the extension of guaranteed deposits for a period of at least three years, which also contradicts current legislation,” the statement says.
Also, the investor did not receive the appropriate permission from the AMCU for the concentration of business entities, and the NBU prohibited him from acquiring a significant participation in the transition bank.
The Fund reminds that the term of the temporary administration at Delta Bank ends on October 2.
Ukraine is proposing to liquidate its largest bank, which has gone bankrupt.