You're reading: NBU declares Eurobank insolvent

The National Bank of Ukraine (NBU) has placed Eurobank (Kyiv) to the list of insolvent banks.

The regulator said last week that this is outlined in NBU Board’s decision No. 73 of June 17, 2016.

Bolat Nazarbayev, who on May 18 was permitted to buy 50 percent of the bank, has not become the shareholder.

The curator at Eurobank revealed transactions aimed at splitting deposits to accounts having under Hr 200,000 at the bank.

Due to a loss of liquidity the bank has stopped settling client transactions on time.

The NBU recalled that the central bank is obliged to place a bank to the list of insolvent banks if transactions, after which liabilities to individuals within the guaranteed limit (Hr 200,000) are increased thanks to the reduction of liabilities to companies, are established.

The regulator said that 98 percent of depositors (8,000) will receive their deposits in full.

The sum to be refunded as of June 15, 2015 totaled some Hr 217 million.

Early May Nazarbayev informed about his plans to acquire 63.335 million shares or 50 percent of the share capital of the Ukrainian bank. In addition, Gulmira Sarsembayeva sought to buy 50 percent of shares in Eurobank.

According to the Antimonopoly Committee, Nazarbayev is affiliated with nonresident entities that operate in the construction, consulting, cargo and passenger transportation, distillation and mixing alcohol spheres. The companies do not operate in Ukraine.

According to the NBU, as of May 20, 2016, 50 percent of shares in the bank belonged to Finance Analit Service LLC with the ultimate beneficiary Adarych. Other 50 percent indirectly via Marketing Technologies consulting firm LLC belonged to Vadym Pushkarev.

Eurobank was founded in 2005. Its assets as of April 1, 2016, were estimated at Hr 1.728 billion, which ranked the bank rank 47th among 109 operating banks, according to the NBU.