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ASTRABANK PJSC declared insolvent

On March 19, 2015, ASTRABANK PJSC was declared insolvent by the National Bank of Ukraine.

ASTRABANK PJSC forms part of the Banking Group "Delta", in which Delta Bank JSC is a designated entity.

Given ASTRABANK PJSC's involvement in risky activities posing threats to the interests of depositors and other creditors and the need to exercise tighter supervision and control over the bank's activities, in February 2015, ASTRABANK PJSC was declared a problem bank and an NBU overseer was appointed to it.

In addition, ASTRABANK PJSC deposited considerable funds on the correspondent account with Delta Bank JSC. With a view to using these high liquid funds, ASTRABANK PJSC sent a letter demanding Delta Bank JSC return these funds in the national currency to the correspondent account opened by ASTRABANK PJSC at the National Bank of Ukraine. However, Delta Bank JSC has failed to comply with the demand.

Following the decision to declare ASTRABANK PJSC a problem bank, no credible resolution proposals to put the back on a sound footing have been submitted to the National Bank of Ukraine. The bank's owner has failed to take measures to provide financial support to the bank in order to bring its operations into compliance with applicable Ukrainian laws.

In compliance with the requirements of Article 76 of the Law of Ukraine On Banks and Banking, given the lack of prospects for a bank recovery, and in order to protect the interests of depositors and other creditors, on March 19, 2015, the Board of the National Bank of Ukraine adopted a decision declaring ASTRABANK PJSC insolvent (NBU Board Resolution No 186 dated March 19, 2015).

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