The Individuals' Deposit Guarantee Fund supports the liquidation of Pivdencombank (Donetsk), the press service of the fund has reported.
‘The fund asked the National Bank of Ukraine to cancel the banking license and liquidate public joint-stock company Pivdencombank,’ reads the report.
According to the report, the liquidation of the bank with the compensation of deposits of individuals by the fund is the less cost-based way of removing the insolvent bank from the market.
The fund also said that due to the necessity of completing the full technological cycle of the forming the list of depositors who have the right to receive compensation in the period of the bank’s liquidation, from Sept. 19, 2014 payments to depositors of Pivdencombank via departments of Fidobank have been suspended.
‘Payments to depositors of Pivdencombank will resume no later than seven days from the moment of canceling the banking license and the start of the liquidation procedure by the NBU, and the payments will be settled irrespective of the term of the deposit agreement,’ reads the report.
Information on the date of the start of payments and the bank-agent of the fund will be announced on the official Web site of the fund and in official publications.
As reported, temporary administration was introduced at Pivdencombank for three months until Aug. 25, 2014. The fund prolonged temporary administration at Pivdencombank until Sept. 25.
