Feedback

Ukraine’s parliament finally bans return of nationalized banks to former owners

Source : 112 Ukraine

270 MPs supported the decision
13:43, 13 May 2020

Open source

The Verkhovna Rada of Ukraine adopted the bill #2571-d, which finally bans the return of nationalized banks to previous owners. 270 MPs supported the decision as 112 Ukraine TV channel reported.

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.

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.

Related: Ukraine’s National Bank supports version of approved ‘banking’ bill

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.

The stock price is determined in the amount of the sum, which could be paid by a purchaser for a bank on regulation day, considering the market conditions and macroeconomic situation. The stock price will be determined by the internationally recognized audit firm, which meets the requirements of the National Bank and it will be appointed by the court, which considers the case on recovery of damages in favor of the owners of the bank. The audit firm will apply international standards of the financial reporting for estimation of the stock price.

If the financial position of the bank shows that the amount of its commitments exceed the amount of the assets it will mean that the ban could not work anymore and its stocks have no value for purchaser. If the assets of the bank exceed its commitments it will not be treated as the sufficient evidence that its stocks had the value.

According to the law, former owners of the bank get the compensation only in the form of money.

Related: Ukraine to get loan from IMF within three weeks after passing law on banking activity, - MP

The recognition of the decision on the withdrawal of the bank from the market as illegal cannot be a ground for its cancelation.

According to the law, during the holding of banking supervision and supervision in prevention and counteraction legalization of funds (money laundering) obtained by criminal means, financing of terrorism and financing of spread of weapons of mass destruction, the National Bank of Ukraine has a right to apply professional judgement.

The court proceedings, which have started but do not have the final decision since the day of coming into forces of this law, are decided, considered or reconsidered according to new rules provided by this law.

On March 30, the 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.

Related: Law on financial monitoring comes into force in Ukraine

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.

On April 30, the Ukrainian parliament supported the usage of a special procedure for bill on banks #2571-d.

 

Topics:
Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

Comments
see more