Politics 2023-11-15T07:19:19+02:00
Ukrainian news
Rada Bans Return Of Insolvent Banks To Former Owners

Rada Bans Return Of Insolvent Banks To Former Owners

Rada, law, Verkhovna Rada, ban, insolvent banks

The Verkhovna Rada has banned the return of insolvent banks to former owners.

270 MPs voted for adoption of bill No.2571-d as a whole, with the minimum required 226, Ukrainian News Agency reports.

On December 12, 2019, the Cabinet of Ministers registered bill No.2571 in the Verkhovna Rada.

Then a number of alternative documents were registered.

On March 30, MP Yaroslav Zhelezniak said that the relevant committee of the parliament supported bill No. 2571-d, but in the wording of the government.

The bill establishes that if the bank is declared insolvent, its owners have the right to demand through the court only compensation, for the calculation of which international auditors will be involved, which the court will choose.

The amount of capital calculated by the auditor (if any), the owner can get back in monetary terms.

The owner may also claim compensation for lost profits and non-pecuniary damage.

Besides, the bill gives the National Bank additional powers.

In particular, the NBU will be able to demand a change in the composition of the council or board of the bank if it considers them to be ineffective, as well as oblige the bank to identify related parties before conducting transactions with them.

At the same time, out of 270 MPs who voted for the law, 200 were from the Servant of the People faction, 23 - from the European Solidarity, 18 - from the Holos, 16 - from the For the Future parliamentary group, 10 - from non-factional MPs, 3 – the Dovіra parliamentary group.

29 MPs from the Opposition Platform - For Life faction, 13 MPs from the Batkivschyna All-Ukrainian Association, 5 – from the Servant of the People, 2 – from For the Future, 2 - non-factional MPs voted against.

Also, 15 MPs from the Servant of the People abstained, 11 - did not vote.

As Ukrainian News Agency earlier reported, it was previously reported that the Verkhovna Rada may consider bills prohibiting the return of insolvent banks to former owners and the land market on March 30.

These bills are a condition for launching a new cooperation program between Ukraine and the International Monetary Fund.

At the same time, the IMF said that the volume of this program could be increased from USD 5.5 billion to USD 8 billion.

Then the IMF announced that the new EFF program for Ukraine could be replaced by Stand-by, and its volume could reach USD 5 billion.

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