Cabinet has decided to liquidate troubled banks and to transfer its assets to the state Rodovid. They promise a month to start paying depositors. If the experiment is successful, followed by Ukrpromom in Rodovid can migrate the assets of other ailing banks.

Operation Liquidation

At its meeting on Wednesday, 7 October, the Cabinet finally adopted the long-awaited decision on the fate Ukrprombank. Above this decision, we have worked the past six months, and came to this conclusion: this is not possible to nationalize the bank, it can not lift - said Prime Minister Yulia Tymoshenko. Therefore, the contribution of individuals transferred to the newly public Rodovid bank.

Case Ukrprombank lasts for almost a year. Its first symptoms appeared as early as last summer, when the bank began to attract new clients high interest rates on deposits - 21-23% at the then market average 16-18%.

In January 2009 the National Bank introduced Ukrprombank interim administration for 1 year and six-month moratorium on satisfaction of creditors' claims. The main reason for the problems of the financial institution - the outflow of deposits from the conflict in the leadership of the bank and the multibillion-dollar loans on the security network of gas stations ANP. The loans were issued to entities associated with the President of the Union of Armenians of Ukraine Ike Pambuhchyanom, which the press ascribes to control Ukrprombank before the VA. According to the NBU appointed temporary administrator, the bad loans on the security of gas stations occupy 40% of the 13-billion-dollar assets of the bank.

into this problem debts the bank was forced to form a large reserve, which is extremely negative impact on its balance sheet. In the first quarter І quarter of this year losses Ukrprombank amounted to 4.46 billion hryvnia, while the net loss of all Ukrainian banks for this period amounted to 7 billion hryvnia. In the capital of the bank formed a huge hole - minus 2,5 billion hryvnia.

To the Rescue Ukrproma NBU proposed to nationalize it, while several billion budget would be spent only on the closing holes in the balance sheet. Cabinet also did not want to buy a financial institution with assets, and was inclined to eliminate Ukrprombank and translation of its depositors in state banks.

We have studied the situation in Ukrprombank (its balances, assets, liabilities) and believe that today, more correctly solve the social question: to ensure the protection of depositors through the state, but the salvation of private business at the expense of taxpayers, namely, to cover losses in full, does not make sense for the state , - said Acting Minister of Finance Igor Umansky back in July.

In September the Ministry of Finance and National Bank is actively discussing the mechanism of elimination Ukrprombank and transfer of its depositors in the state bank. At the same time in the Cabinet insisted on Rodovid Bank , and in the NBU and the Secretariat of the President - to Oschadbank.

While at the college and Grushevskogo broken spears, Ukrprombank interested private investors, including Platinum Bank. It delayed a decision on the elimination of the financial institution. The main interest of platinum bankers - branch network Ukrproma, which would allow Platinum Bank to expand its consumer segment. However, the government was not interested in proposals from private investors. The government itself more profitable to engage in rescue Ukrprombank and make this a massive PR-campaign, than to pay the bank for recovery to some private investors, - quoted the newspaper Delo a source close to negotiations.

queue for deposits

Ukrprombank, according to Yulia Tymoshenko, owed to investors 7.37 billion hryvnia. The gap between liquid assets and liabilities on deposits of individuals in Ukrprombank government plans to cover the expense of domestic bonds goszayma, which will produce 4 billion hryvnia.

Deposit physical persons and liquid assets, plans to transfer to the state Rodovid Bank during the month. RODOVID and would get 298 branches, Ukrproma. Payments begin only after completion of translation. According to chairman of board NBU Peter Poroshenko the whole procedure has been agreed and there was only a technical job.

Chairman Rodovid Bank Sergey Shcherbina assured that his agency enough months for testing and launching of payments. To be determined by the specific department in which the deposit will be paid by customers Ukrprombank - Shcherbina told about the procedure. - For sure, we shall have beaten path: create a registry - the so-called electronic queue, which will be carried out and payment. To conditionally speaking, to stand in this queue, the depositor will be sufficient to call into our call-center or register online. After that he will be determined by the time that he would come and get their money. We do not want to cause pandemonium. The Ministry of Finance plans to settle with investors Ukrprombank within two to three months, that is closer to the election.

competition for the votes of investors

The President's office criticized the decision of the Cabinet and compared the translation of depositors Ukrprombank in Rodovid Bank with the union of two cripples. The first deputy head of Presidential Secretariat Oleksandr Shlapak reminded that Rodovid Bank maintained a moratorium on the execution of creditors' claims (15 October). The president insisted that the deposits of depositors' Ukrproma should be translated into Oschadbank , which has a developed network of branches and deposits which covered 100% state guarantee.

President Viktor Yushchenko decided to seize the initiative from the Yulia Tymoshenko and also to show himself a defender of the interests of defrauded investors. The head of state had turned against unscrupulous borrowers, because of the actions which, in his opinion, 15 troubled banks may not pay off depositors.

First, Yushchenko ordered the Border not produce debtors abroad to a temporary administrators of troubled banks did not have to look for dishonest borrowers abroad.

Secondly, the president ordered the SBU and the Prosecutor General's Office to take control of fictitious bankruptcy borrowers troubled banks. Land should burn under the feet of those who did not return the loan, - Yushchenko said.

Third, the President instructed the National Bank of Ukraine for five days to complete negotiations with all the major borrowers of these banks and a timetable for repayment or restructuring of loans.

Fourthly, Victor Yushchenko has accused the judges of the problems in banks. The President recalled that the court forbade Ukrprombank arrest the mortgaged property of the company Alfa-Nafta - the very refueling network ANP. Guarantor of the Constitution considered these judgments illegal, but judges have taken their calls Pavlik Morozov. Also, the president demanded that the High Council of Justice and the Supreme Economic Court to review decisions taken by different courts in favor of borrowers and to prepare an inventory on the dismissal of judges. Lawyers called the president's remarks rather a declaration designed to scare borrowers.

All will be in Rodovid

In the future, the Ministry of Finance plans to transfer the assets of the majority of troubled financial institutions in Rodovid Bank. The proposal outlined in a letter to the Ministry of Finance Cabinet's leadership, the IMF and World Bank. Based on the fact that the proposal of the Bank (Rodovid Bank's willingness to accept the assets and liabilities of troubled banks) generally meets the priority tasks to ensure the stability of the banking sector and restore confidence in the citizens who propose to continue consultations on its possible participation in resolving such issues the other problem banks , - stated in a message to the Ministry of Finance.

followed Ukrpromom in Rodovid Bank could spill assets and liabilities of the bank's second major problem - Nadra. Bank owed to external creditors about $ 900 million, and the process of restructuring of this debt is far from complete. However, the government refuses to recapitalize the Nadra, while financial institution does not get rid of debts.

In

Rodovid Bank are ready to accept other people's assets and liabilities, but to become a bad Improved sanitation, the bank is not collected. To be Improved sanitation bank, we will have to cease their commercial activities and work to deal exclusively with problem loans of liquidated banks - said the head of Rodovid Bank Sergey Shcherbina Delo. - So we, in a letter, most likely, is about transfer of good assets in the bank.

dispute between the Cabinet and NBU on the fate of the bank Nadra can be as long as on Ukrprombank. NBU Council head Petro Poroshenko, speaking with a report in the Rada, expressed confidence that the bank Nadra can and must recapitalize ... This will facilitate the resumption of confidence in the banking system.

However, depositors of troubled banks, would welcome any solution that will allow them to finally have access to their money.

Sergei Pasyuta

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