Ukrainian President Petro Poroshenko has signed the law on amendments to Article 231 of the law on the national budget of Ukraine for 2014, which authorized the Cabinet of Ministers of Ukraine to issue government domestic loan bonds in exchange of bills of exchange of the Individuals' Deposit Guarantee Fund, the press service of the head of state has reported.
“The issue of bills of exchange by the fund in the electronic form requires additional time and financial resources, and it could not be realized in the near term. In the present situation in the banking system the fund requires the urgent attraction of additional funds to fulfill its powers,” reads the report.
The press service of the president reported that the law is aimed at the necessity of ensuring solvency of the fund.
As reported, on Oct. 7, 2014, the Ukrainian parliament approved a scheme for allocating Hr 10 billion to the Individuals’ Deposit Guarantee Fund, required to fulfill liabilities to depositors to pay the guaranteed sum on deposits this year, which amounts to no more than Hr 200,000 to each depositor.
“The Individuals’ Deposit Guarantee Fund does not have money now. If we don’t pass [draft laws], we’ll deprive the depositors of the right to receive the guaranteed refunding,” Finance Minister Oleksandr Shlapak said, presenting two draft laws at the parliament on Tuesday, Oct. 21.
Shlapak said that 13 banks are passing the liquidation procedure now, and Hr 10 billion is required to pay funds to their depositors, although the need of the fund in money as of late 2014 is estimated at Hr 16 billion, and the National Bank of Ukraine covers only Hr 5 billion of them.
He noted that earlier lawmakers foresaw the issue of government domestic loan bonds worth Hr 10.1 billion via making amendments to the national budget for 2014, which were to be exchanged to bills of exchange of the Individuals’ Deposit Guarantee Fund, although without the adoption of two additional draft laws it is impossible to realize the transaction.
