The Shevchenkivskyi District Court of Kyiv ruling of 1 October 2019 in favor of the National Bank of Ukraine (NBU) to recover UAH 1.539 billion from Kostiantyn Zhevaho, the former owner of Finance and Credit Bank, to repay the debt of the bank on previous refinancing loans, came into effect.
Kostiantyn Zhevaho tried to contest the ruling of the court of first instance, however on 13 December the Kyiv Court of Appeal has dismissed his appeal without consideration due to failure to pay the court fee in due time set by the court. In light of this, the ruling by the Shevchenkivskyi District Court came into effect. Thus, on 26 December 2019, the NBU received the letters of enforcement and referred to the State Enforcement Service for enforcement of the court rulings.
“The NBU will apply all possible legal remedies to recover the funds in order to repay the bank’s debt. Today the total debt of Finance and Credit Bank to the NBU under all refinancing loans amounts to UAH 6.6 billion. The NBU expects this debt to be repaid on the account of funds enforced from Kostiantyn Zhevaho, since he is the surety provider under refinancing loans, as well as on the account of enforced property of his controlled companies that are surety providers as well, against which the NBU also filed about 30 lawsuits,” noted Sergiy Boiko, Head of Legal Support and Remedy Division of the NBU’s Problem Assets Management Office.
For information on NBU pending cases, as well as those relating to debt repayment of Finance and Credit Bank go to http://storm.bank.gov.ua/matrix.
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In 2015, Kostiantyn Zhevaho, the former owner of Finance and Credit Bank, signed a surety agreement with the NBU under which he personally guaranteed to repay to the regulator the refinancing loans his bank had taken out under several loan agreements.
Since Kostiantyn Zhevaho demonstrated his unwillingness to meet his liabilities under the surety agreement in good faith, the NBU filed a lawsuit in December 2015 in order to recover the debt. Noteworthy, the trial has actually lasted for almost 3.5 years, since the defendant has used every opportunity to delay the trial.
The Shevchenkivskyi District Court of Kyiv ruled on 1 October 2019 in favor of the NBU to recover UAH 1.539 billion from Kostiantyn Zhevaho, the former owner of Finance and Credit Bank, to repay the debt of the bank on previous refinancing loans, and ruled against the counterclaim of Kostiantyn Zhevaho on invalidity of the surety agreement.