Rada endorsed the draft law Poroshenko on the government guaranteeing deposits of natural persons

Рада поддержала законопроект Порошенко о гарантировании государством вкладов физлиц

The Verkhovna Rada of Ukraine supported in principle and in General with the edits bill No. 5553 “On amendments to the Law of Ukraine “On banks and banking” regarding the state guarantee of deposits of individuals”. The decision adopted by 276 people’s deputies.

Note, this draft law was registered in the Parliament by the President of Ukraine Petro Poroshenko as urgent.

As stated in the explanatory note to the document No. 5553, the bill is designed to enhance trends to overcome crisis phenomena in the banking system of Ukraine and consolidate the manifestation of the will of the state as owner of state banks in the protection of the interests of depositors.

The bill provides to amend article 57 of the law of Ukraine “On banks and banking activities”. According to these changes, the state assumes the obligation to make reparation to individuals – depositors of state banks for the part of Deposit exceeding the size limit of the refund of contributions prescribed in accordance with the law of Ukraine “About system of guaranteeing deposits of individuals”. Thus, for these individuals are also saved under the law of Ukraine “About system of guaranteeing deposits of individuals” of the guarantee on deposits in the amount of the compensation limit on deposits.

Related news: Fitch has downgraded the viability rating of “PrivatBank”

Note that according to the law “About system of guaranteeing deposits of physical persons”, the Fund guarantees to each depositor of the Bank reimbursement for its contribution. The Fund reimburses money in the amount of the contribution, including interest, as of the date of the beginning of the inference procedure by the Fund the Bank from the market, but not more than the amount of the compensation limit on deposits, established on this day, regardless of the number of deposits in one Bank. The amount of the compensation limit on deposits cannot be less than 200 thousand hryvnia. The administrative Council of the Fund is not entitled to take a decision to reduce the maximum amount of compensation on deposits.

News: NBU: 33 ATM of “PrivatBank” does not work for technical reasons, some no cash

Source