On 5 April 2016, the National Bank of Ukraine adopted a decision to declare CB KHRESCHATYK PJSC insolvent.
The rationale behind this decision was deterioration in CB KHRESCHATYK PJSC’s liquidity position. This bank began put payments on hold and required financial support from its shareholders to emerge from the turmoil. The NBU was engaged in talks with the bank’s shareholders. However, the talks ended without making any substantial progress. In view of the refusal by the bank’s shareholders to provide liquidity support to the bank needed to keep it afloat and CB KHRESCHATYK PJSC’s failure to comply with liquidity and capital ratios, the NBU Board declared this bank insolvent.
Following the bank’s recognition as insolvent, Member of Parliament Mr Mykhailo Holovko disseminated false information claiming that the NBU allegedly advised CB KHRESCHATYK PJSC’s customers to transfer their accounts to the banks linked to the NBU’s senior officials.
The NBU dismisses as unfounded information circulated by media and spread by Mr Holovko.
Please be informed that the NBU has never advised CB KHRESCHATYK PJSC’s customers to transfer their accounts to other banks. The NBU Board members are in no way linked to any bank as this may lead to the conflict of interests.
The Law of Ukraine On the National Bank clearly reads that NBU Board members shall not be direct or indirect holders of shares in any bank.
In response to the dissemination of false information accusing the NBU senior officials of abusing their power, the central bank has decided to file a lawsuit against Mr Holovko, seeking a court decision to protect its business reputation. The NBU seeks to overturn unfounded allegations against it and seeks compensation for moral damages.