DGF actions may slow down negotiations regarding Ukraine's accession to EU – statement

The actions and statements of the Deposit Guarantee Fund (DGF) contradict EU laws and regulations regarding the banking sector.

This is indicated in a statement of the Ukrinkom PJSC, published on the website of the financial institution.

"The Deposit Guarantee Fund probably needs to adjust its behavior and communications to Ukrainian legal entities and harmonize its activities with the need for our country's accession to the EU. After all, public accusations and non-compliance with the future banking legislation distance entrepreneurs from the desire to cooperate with the Fund," the Ukrinkom PJSC said in the statement.

In order to join the EU, Ukraine is obliged to adopt EU banking legislation. Including — for a structured approach to the settlement of bank insolvency and the organization of bank liquidation processes.

It is also about the relationship between the state and a commercial bank in the event of the insolvency of the latter. In particular, if the bank has repaid its debt, it has the opportunity to return to the financial market.

Harmonization of Ukrainian insolvency legislation with EU standards will reduce inconsistencies and improve the predictability of liquidation results, increase investor confidence and stability of the banking sector, and facilitate smooth cross-border insolvency proceedings.

On June 25, negotiations on Ukraine's accession to the European Union begin. Earlier, the Council of the European Union officially approved the negotiating framework for the accession of Ukraine and Moldova to the EU. The entry of a new country into the European Union requires it to implement EU legislation.

This involves negotiations and coordination of 35 chapters on all areas of state activity — taxes, banking, ecology, investments.