The National Bank of Ukraine reiterates the importance of streamlining the Deposit Guarantee System and calls on the Verkhovna Rada of Ukraine to uphold a Draft Law of Ukraine On Amendments to Some Laws and Regulations of Ukraine (with regard to the streamlining of the Deposit Guarantee System and resolution of insolvent banks).

Enacting the bill into law will not only enhance the institutional capacity of the Deposit Guarantee Fund (hereinafter – the Fund), but also speed up the process of repaying deposits to depositors, thus contributing to mitigating  social tensions and enhancing depositors’ confidence in the banking system. In addition to making the repayment procedure faster, what is important about the Draft Law, is that the provisions set out in it will also apply to sole proprietors.

Commenting on the Draft Law, Director of the NBU Legal Department Viktor Novikov said: “It is also important that the adoption of this Draft Law will enable the Fund, and consequently the state to reduce their spending, inter alia, through the establishment of a consolidated office engaged in the disposal of insolvent banks’ assets.

The adoption of this Draft Law is in line with commitments undertaken by Ukraine before the International Monetary Fund and the World Bank.