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UAH28.8bn. Its peer Oschadbank, whose gross loan portfolio is 9% lower, drew capital contributions of UAH31.2bn for the same period.
Pechersk District Court in Kyiv ruled on September 2 to force Privatbank to service deposits of British companies controlled by Surkis brothers, Ukraine’s Finance Ministry reported the same day. The deposits for a total amount of about $250mn were bailed in after the bank was declared insolvent and before it was nationalized in December 2016. The ruling is aimed at the recovery of about $350mn from Privatbank (including principal and accumulated interest), MinFin reported while highlighting that it disagrees with the ruling and alleging that it was adopted in violation of procedural law. The ruling was condemned by the National Bank of Ukraine, PM Denys Smyhal and Justice Minister Denys Malyuska, with the last calling it as one of the biggest scandals in the history of Ukraine’s judiciary system. In particular, Malyuska highlighted that the ruling to return money to the Surkis companies was made without consideration of the bail-in case on its merits. All the affected parties promised to appeal against this ruling as soon as they receive its text.
Ukraine's National Anti-Corruption Bureau of Ukraine (NABU) has filed an appeal against a recent decision by the Kyiv's Pechersky District Court thatordered​P​ rivatBank​topay$350mntotheSurkisbrothers,​NABU announced on September 7. "On September 4, NABU initiated criminal proceedings on the fact of an uncompleted attempt to take possession of PrivatBank's property on an especially large scale. Among the probable defendants in the case are representatives of the judicial branch of government, officials of the State criminal Executive Service, employees of six British companies associated with the Surkis oligarchs," NABU announced. ​A Kyiv-based court ruled on September 2 that Privatbank should be​ ​forced to service the deposits of British companies controlled by the Surkis brothers​, Ukraine’s Finance Ministry reports. The deposits, worth a total of about $250mn, were bailed in after the bank was declared insolvent and before it was nationalised in December 2016. The ruling is aimed at the recovery of about $350mn from Privatbank (including principal and accumulated interest), the Finance Ministry reported while highlighting that it disagrees with the ruling and alleging that it was adopted in violation of procedural law. ​The Surkis companies asked the court to precisely determine the amount that PrivatBank must pay them as part of the fulfilment of obligations to service deposits placed by offshore companies in 2012-2014, before the bank's nationalisation, in the accounts of the Cyprus branch of the financial institution.
Oschadbank may joint national deposit guarantee system in 2021.​ ​The Financial Stability Council agreed on Sept. 2 a plan to integrate Oschadbank into Ukraine’s system of deposit guarantees, the National Bank reported on Sept. 7. Taking into account the bank’s large deposit portfolio, implying large contributions by the bank to the Deposit Guarantee Fund, Oschadbank will have a grace period till the end of 2023, the regulator reported. The Council’s plan will require legislation changes, it added.​ ​Oschadbank is the only Ukrainian financial institution whose individual deposits, by law, are directly guaranteed by the government, with no limits. Thus far, the bank is not a member of Ukraine’s Deposit Guarantee Fund, which insures individual deposits for up to UAH 200,000. The fund’s members are paying one-off contributions of 1% of their share capital and contribute quarterly 0.125% of value of their local-currency individual deposits and 0.2% of foreign currency deposits.
55​ UKRAINE Country Report​ October 2020 ​ ​www.intellinews.com