14 May 2018
The National Bank
of Ukraine (NBU) informs that timely and responsible decisions of the Ministry
of Justice of Ukraine in response to the NBU reports put an end to unlawful
actions of public registrars.
The Ministry has
stopped a fraudulent scheme that caused misappropriation by the third parties
of a building in the center of Poltava city of UAH 24.8 million pledge
value that VAB Bank PJSC owned as a private property.
In June 2014, the
bank mortgaged the building to the NBU, whereof a respective record was made in
the state register of titles.
However, on 27
March 2018, the NBU became aware that the aforesaid building was illegally
released from the right of claim and reregistered to a private company.
At the same time,
the application for registration was seemingly filed by VAB Bank PJSC. But, an
authorized employee from the Deposit Guarantee Fund (DGF) informed that no such
application for registration were filed.
It should be noted
that termination of mortgage and restriction to alienate real estate for
further alienation without the NBU’s consent as a mortgagee is a direct
violation of the NBU rights and legal interests prescribed in Article 9
paragraph 3 of the Law of Ukraine On Mortgage.
Thus, the NBU
reported to the Ministry of Justice of Ukraine decisions made by public
registrars on the building and demanded to reinstate records on mortgage and
right of claim to the property of VAB Bank PJSC and restrictions on
On Friday 4 May,
the Grievance Commission on State Registration Issues with the Ministry of
Justice of Ukraine reviewed the NBU complaints and ruled for the NBU.