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UNICOMBANK PJSC declared insolvent

UNICOMBANK PJSC  has been declared insolvent  due to the total loss of liquidity, reads NBU Board Resolutiono No. 704, dated  October 15, 2015.

Up until December 2014, UNICOMBANK PJSC was incorporated and operated in Donetsk.  Then, in accordance with applicable laws and regulations, it was re-incorporated outside the ATO area, in Lviv. However,  a substantial part of its assets and collateral were left behind in Donetsk Oblast. The debtors have ceased servicing loans and all inflows of funds to the bank have all but halted.

On October 6, 2015, UNICOMBANK PJSC was declared a problem bank. Nonetheless, the bank's owners did not bother to take any measures to support its liquidity, improve its financial standing and remedy breaches of the NBU regulations.  

According to statistical reporting submitted by the bank, zero balances are held in the bank’s correspondent account with the NBU. The balance of cash was critically low and as of October 13, 2015, amounted to UAH 80 thousand, or 0.01% of the bank's liabilities and 2% of the customers' operations that the bank had failed to execute. Thus, UNICOMBANK PJSC was unable to settle the creditors' legal claims in due time and in full due to the lack of funds.

Pursuant to paragraph 3 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine was obliged to declare this bank insolvent if the facts have been revealed that the bank has failed to record in its accounting records the customers' payment orders that have not been executed by the bank in due time as prescribed by law following the decision to declare the bank a problem bank.

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