Deposit Guarantee Fund's liabilities to depositors of bank Finance and Credit some UAH 10 bln, no deposit splitting recorded – NBU head

The National Bank of Ukraine (NBU) has monitored the operation of bank Finance and Credit every day after its status as a troubled bank was lifted on August 27 until the bank was declared insolvent on September 17, and the rumors on alleged splitting transactions or other transactions on the removal of funds from the bank are untrue, NBU Governor Valeriya Gontareva has said.

"Our curators in the bank monitored the situation, and no splitting was recorded. As of August 1, 2015, the sum of deposits that could be refunded by the Individuals' Deposit Guarantee Fund totaled UAH 10.488 billion, and as of September 1, 2015 – UAH 10.392 billion," she said in an interview with Interfax-Ukraine.

Gontareva said that if the splitting transactions were carried out then the sum would have increased, while it in fact decreased.

She said that this year, the NBU provided a UAH 1.45 billion in refinancing to bank Finance and Credit only to pay deposits worth up to UAH 200,000, which the bank spent efficiently. Out of UAH 750 million provided in June, as of September 14, 2015, UAH 250 million remains.

"Each day we saw in the report how much from our line of UAH 750 million was paid and to whom – I had a daily report on the payments under UAH 200,000," she said.

Gontareva said that 234,000 people or 93.2% of depositors in the bank would receive their deposits in full, as their size does not exceed the sum guaranteed by the Individuals' Deposit Guarantee Fund of UAH 200,000. She said that the NBU's decision to declare bank Finance and Credit as insolvent will ensure that UAH 200,000 is retrieved by those depositors whose deposits worth UAH 1.5 billion were to be converted into capital.

She said that due to the large number of depositors, the new law on the accelerated payments on deposits would not apply to bank Finance and Credit, and many of the depositors will have to wait for three months.

Gontareva said that the withdrawal of bank Finance and Credit from the market would not affect the banking system as the bank was not systemic and was on the list of troubled banks since late 2014.

"There is no interbank market there," she added.

Bank Finance and Credit was founded in 1990. The ultimate beneficiary of the bank is Ukrainian businessman and MP Kostiantyn Zhevaho, who is a majority shareholder and CEO of Ferrexpo, a major iron ore pellet producer and exporter.

Bank Finance and Credit ranked 10th among 127 operating banks in the country as of July 1, 2015, in terms of total assets worth UAH 38.882, according to the NBU. Its liabilities to individuals as of July 1, 2015 totaled UAH 16.98 billion, including UAH 11.61 billion pegged to foreign currency.

Gontareva also said that liabilities of bank Finance and Credit to the NBU under refinancing credits total UAH 6.4 billion with the capital of the bank being UAH 5.4 billion.