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Ukrainian Parliament prohibits return of nationalized banks to their former owners

Source : 112 Ukraine

The bill envisages the possibility of compensation for losses and lost profits for the former owners of banks, whose liquidation or nationalization will be declared illegal
17:58, 30 March 2020

Verkhovna Rada
Reuters

Verkhovna Rada of Ukraine has approved the Bill № 3260 "On amendments to the legislative acts of Ukraine on improving some mechanisms for regulation of banking activities". 267 MPs voted in favor.

The law permanently prohibits the return of nationalized banks to the former owners, prohibits the return of bankrupt banks, whose owners have succeeded in canceling the resolution of the National Bank on their insolvency through the courts, to the market.

The bill envisages the possibility of compensation for losses and lost profits for the former owners of banks, whose liquidation or nationalization will be declared illegal.

Related: Ukraine’s government submits bill on banks to parliament within new IMF cooperation program

In particular, compensation for loss of profit is made in the amount of profit that the owner could receive, but the National Bank's insolvency decision was the only reason that deprived him of this opportunity.

Ex-owners of the bank may receive compensation for losses in the amount of the bank's shares on the day when the National Bank made a decision on bank insolvency/revocation of the bank license and liquidation of the bank.

As we reported earlier, President of Ukraine Volodymyr Zelensky warned of the threat of default if Verkhovna Rada does not vote on the laws, adoption of which is necessary in order to receive the next tranche from the International Monetary Fund, on March 30.

Related: Ukraine agreed with IMF to increase programs to $8 billion, - Zelensky

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