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NBU recognized Delta Bank insolvent

НБУ признал Дельта Банк неплатежеспособным

On March 2, 2015, the Board of the National Bank of Ukraine adopted a resolution on classifying PJSC Delta Bank as insolvent. Kreditprombank and Omega Bank are also recognized as insolvent.

On March 2, 2015, the Board of the National Bank of Ukraine adopted a resolution on classifying PJSC Delta Bank as insolvent.

According to the NBU, 94% of all depositors of Delta Bank JSC have deposits within the amount of 200 thousand hryvnias guaranteed by the Deposit Guarantee Fund for individuals, so that they will receive their deposits in full.

"The number of such depositors is 554 thousand. Some customers with significant amounts of deposits (about 6% of the total number of depositors) will receive their deposits within the amount guaranteed by the Fund," the message said.

The main reason for the inclusion of Delta Bank JSC into the category of insolvent was the failure of the owner of the bank to take timely, effective and sufficient measures to improve the financial condition of the bank and bring its activities in line with the requirements of Ukrainian legislation.

The main shareholder and management of Delta Bank JSC have chosen a high-risk strategy for rapid growth through the acquisition of low-quality assets.

In addition, the aggressive development of Delta Bank's corporate business, combined with the lack of sufficient experience in the selected segment, led to a significant deterioration in the quality of the loan portfolio and a decrease in bank liquidity.

At the beginning of 2014, the NBU provided loans to the bank to maintain liquidity in the amount of 4.15 billion hryvnias, and after agreeing on the bank's capitalization program in September 2014, a stabilization loan in the amount of 960 million hryvnias.

Such assistance from the National Bank temporarily improved the situation in the bank, but did not lead to a significant improvement in financial condition.

The anti-crisis actions of shareholders and the bank’s management to correct the situation were also insufficient, and the bank’s recapitalization plan was not implemented.

Also, the National Bank of Ukraine (NBU) recognized Kreditprombank and Omega Bank (both Kiev) insolvent. As reported on the NBU website, the relevant decisions are enshrined in decisions of the National Bank No. 151 and No. 152 of March 2.