On 13 July 2017, in accordance with Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine issued Decision No. 441-BS On Declaring JSC NOVIY PJSC Insolvent.

The General Meeting of JSC NOVIY PJSC’s shareholders decided to terminate banking operations and submitted the respective plan to the NBU.

However, pursuant to the Law of Ukraine On Simplified  Recapitalization and Restructuring Procedures for Banks, the NBU is not authorized to approve the bank resolution plan if there are circumstances under which this bank cannot be declared insolvent.

As of 12 July 2017, the regulatory capital of JSC NOVIY PJSC was less than one third of the minimum required amount. Therefore, pursuant to paragraph 2 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the NBU Board was obliged to take a decision to declare this bank insolvent.

The NBU emphasizes that 99% of all the depositors of JSC NOVIY PJSC will be paid out in full, as amounts held in their deposit accounts fall within the insured deposit amount of UAH 200,000, which is covered by the Deposit Guarantee Fund.    Customers with larger deposits (above the insured deposit amount) will be reimbursed up to the compensation limit guaranteed by the Fund. A total of UAH 36 million will be paid out by the DGF.

As of 8 June 2017, the State Space Agency of Ukraine was the qulifying shareholder in  JSC NOVIY PJSC (18.3% of shares).  The remaining shareholders hold stakes equal to less than 10% of the bank’s shares each.