You're reading: NBU declares Delta Bank, Kreditprombank, Omega Bank insolvent

The National Bank of Ukraine (NBU) has declared Delta Bank, Kreditprombank and Omega Bank (all based in Kyiv) insolvent.

According to a posting on the NBU’s website, the decisions are stipulated in NBU resolution Nos. 150, 151 and 152 of March 2.

“94 percent of all depositors of Delta Bank have deposits within the sum of Hr 200,000 guaranteed by the Individuals’ Deposit Guarantee Fund and they will receive their deposits in full. The number of the said depositors is 554,000. Some of clients with large deposits (around 6 percent of the total number of depositors) will receive their deposits within the guaranteed sum,” reads the report.

NBU said that the main reason why Delta Bank was declared insolvent is that the owner of the bank did not take effective and efficient measures to improve the financial state of the bank on time.

NBU said that the central bank in early 2014 issued credits worth Hr 4.15 billion to Delta Bank to support liquidity and after agreeing the bank’s capitalization program in September 2014 NBU issued a stabilization credit of Hr 960 million secured by notes guaranteed by the government.

“The measures temporarily improved the situation at the bank, although they did not bring to the large improvement of its financial state. Anti-crisis actions of shareholders and top managers of the bank were not enough and the recapitalization plan for Delta bank was not realized by its shareholders,” NBU said.

As for Kreditprombank and Omega Bank, the owners of the banks did not take measures to support the banks and bring their operation in line with Ukrainian law.

Delta Bank was founded in 2006, Kreditprombank in 1997 and Omega Bank in (earlier Swedbank) 1991.

The largest shareholders of Delta Bank as of early 2015 were Mykola Lahun (70.6059 percent) and Cargill Financial Services International, Inc. (29.3941 percent).

The only shareholder in Kreditprombank left the bank as a shareholder in February 2015.

Lahun held 99.9998 percent in Omega Bank as of early 2015.

Delta Bank ranked fourth among 158 operating banks as of January 1, 2015, in terms of total assets worth Hr 60.303 billion, Kreditprombank 85th with Hr 1.298 billion and Omega Bank – 102nd with UAH 768 million, according to the National Bank of Ukraine.