Ukrainian Parliament prohibits return of nationalized banks to their former owners

The bill envisages the possibility of compensation for losses and lost profits for the former owners of banks, whose liquidation or nationalization will be declared illegal17:58, 30 March 2020Verkhovna Rada

Reuters

Verkhovna Rada of Ukraine has approved the Bill № 3260 “On amendments to the legislative acts of Ukraine on improving some mechanisms for regulation of banking activities”. 267 MPs voted in favor.

The law permanently prohibits the return of nationalized banks to the former owners, prohibits the return of bankrupt banks, whose owners have succeeded in canceling the resolution of the National Bank on their insolvency through the courts, to the market.

The bill envisages the possibility of compensation for losses and lost profits for the former owners of banks, whose liquidation or nationalization will be declared illegal.

In particular, compensation for loss of profit is made in the amount of profit that the owner could receive, but the National Bank’s insolvency decision was the only reason that deprived him of this opportunity.

Ex-owners of the bank may receive compensation for losses in the amount of the bank’s shares on the day when the National Bank made a decision on bank insolvency/revocation of the bank license and liquidation of the bank.

As we reported earlier, President of Ukraine Volodymyr Zelensky warned of the threat of default if Verkhovna Rada does not vote on the laws, adoption of which is necessary in order to receive the next tranche from the International Monetary Fund, on March 30.

(C)112UA 2020

One comment

  • Prince William of Orange

    Of course they built in a trap: Kolomoisky can get money if the bank gets liquidated. It is not very likely, but why on earth would someone add this to the bill?

    Liked by 1 person

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