Ukraine's Verkhova Rada has passed the law proposed by
Ukraine's president on returning personal savings deposits via the system for
guaranteeing the deposits of individuals suffering losses because of banking or
other financial fraud (No. 5390)
The law was passed on Tuesday. Some 285 lawmakers
supported the measure, more than the 226 simple majority required.
As earlier reported, on November 11, Ukrainian
President Petro Poroshenko during a meeting with depositors from Mykhailovsky
bank said that he would submit said draft law to parliament urgently.
According to the bill, banks performing the functions
of a representative, agent or intermediary when attracting investments must
acquaint customers in written form on the ineligibility of guarantee provided
for such funds by the Individual Deposit Guarantee Fund (IDGF).
An explanatory note attached to the draft law said
such a system would avoid violating the trust of depositors using banks. In
particular, this pertains to the scheme under which individuals in banks are
offered to sign a loan agreement with non-banking financial institutions via a
bank representative. Bank accounts had been opened and funds were transferred
to these non-banking entities.
According to the IDGF, Mykhailovsky bank used such a
scheme with 14,000 individual depositors for more than UAH 1.5 billion worth of
transactions. More than 45% of the depositors were more than 55 years old.
Under the law, IDGF is tasked with studying carefully
documents submitted by each individual depositor, and, not later than 20
working days from the date the law takes effect, to begin making payments to
return savings deposits.
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