07 December 2016, Wednesday, 14:45 183

NBU Declares Trust Bank Insolvent

The National Bank of Ukraine has declared the Kyiv-based Trust Bank insolvent.

The press service of the National Bank of Ukraine announced this in a statement, Ukrainian News Agency reports.

The National Bank endorsed the decision on December 5, 2016.

The statement reads that the worsening of the financial capacity of Trust Bank has been caused by a number of factors. In particular, a big part of loans have been issued on the territories of the antiterrorist operation.

The capital of the bank has become negative (minus UAH 135 million as of December 1).

According to the National Bank, the shareholder of the financial institution has had negotiations with a number of investors to sell the bank. However, the National Bank has not received any pack of documents required for NBU's consent to purchase of a stake in Trust Bank.

Flexinvest PLC (Cyprus) intended to purchase a stake in the bank. Flexinvest PLC is controlled by Russian citizen Alexander Mironov.

According to data posted on the website of the Central Bank of Russia, Flexinvest PLC is the only shareholder of Mir Bank (Moscow, Russia).

According to the website of the Central Election Commission of the so-called Republic of Crimea, Alexander Mironov took part in the local elections in Crimea after the annexation of the Crimea by Russia.

According to the National Bank of Ukraine, 96% of depositors of Trust Bank will get their deposits in full, as their deposits do not top UAH 200,000.

The total guaranteed sum to be paid to the depositors is UAH 552 million.

As Ukrainian News earlier reported, Volodymyr Avramenko indirectly owns a 78.9% stake in the Trust bank and Russian citizen Sergey Beliaev 16.1%.

In the middle of 2015 shareholders of the bank were Russian citizens Ilia Yurov, Nikolai Fetisov, and Sergey Beliayev.

The bank reported a loss of UAH 38.3 million for 2015 and a profit of UAH 440,000 for the first half of 2016.

According to the National Bank of Ukraine, the Trust bank was the 60th largest bank by asset size (UAH 825 million) out of the 101 banks operating in Ukraine as of July 1.