OREANDA-NEWS. On 6 December 2016, the Board of the National Bank of Ukraine issued Decision No. 468-рш/БТ declaring BANK TRUST Public Joint-Stock Company insolvent in accordance with Article 76 of the Law of Ukraine On Banks and Banking.

Deterioration in the financial standing of BANK TRUST PJSC was across the board and was caused by a number of factors. In particular, a large volume of loans was issued by BANK TRUST PJSC in the ATO regions. The borrowers' failure to service loans led to a severe deterioration in the Bank's financial position. The Bank's equity turned negative (as of 1 December 2016 – "minus" UAH 135 million). In turn, this has resulted in the Bank’s inability to comply with prudential ratios.

The recapitalization program developed by BANK TRUST PJSC lacked measures to improve the Bank’s financial standing within the set timelines. In particular, the shareholders (investors) have failed to submit to the NBU letters of commitment to inject additional capital into the bank.

The bank’s shareholder has held talks with potential investors to explore the possibility of selling the Bank. However, a package of documents required to secure the approval of the acquisition of a qualifying holding in BANK TRUST PJSC was never submitted to the NBU.

Effective from 2 July 2016, BANK TRUST PJSC was subject to restrictions limiting its ability to raise household deposits. However, in late November, the Bank a policy of offering high interest rates for deposits in violation of a ban imposed by the NBU. Pursuant to paragraph 6 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the NBU is obliged to declare BANK TRUST PJSC if this bank has failed to fulfill the orders or decisions of the NBU (including those related to applying corrective measures/sanctions) and/or requirements of the NBU to eliminate violations of the banking laws and NBU regulations within the term specified by the NBU.

According to information available to the NBU, 96% of all the depositors of BANK TRUST PJSC will be reimbursed in full, as amounts held in their deposit accounts fall within the insured deposit amount of UAH 200 thousand, which is covered by the Deposit Guarantee Fund. Customers with larger deposits (above the insured deposit amount) will be reimbursed up to the compensation limit guaranteed by the Fund. The total amount of insured deposits subject to compensation stands at UAH 552 million.

Ukrainian business Mr Volodymyr Avramenko (holds a 78.9% stake) and a Russian Federation citizen Mr Serhii Bieliaiev (a 16.1% stake) are the Bank’s qualifying shareholders. At the same time, until mid-2015 Russian Federation citizens Mr Illia Yurov, Mr Mykola Fetisov and Mr Serhii Bieliaiev were the Bank’s shareholders.