On 20 December 2016, The Kyiv Administrative Court of Appeal allowed an appeal filed by the National Bank of Ukraine seeking to reverse the ruling of the Court of First Instance overturning NBU Board Resolution No.408 On Declaring CB Financial Initiative Insolvent.
NBU Governor Ms Valeria Gontareva represented the NBU in court and delivered a speech at the hearing. The NBU Governor offered insight into the reasoning behind the decision on declaring Bank Financial Initiative Insolvent. In particular, Ms Gontareva underline that at the time of the decision the bank had lost liquidity and capital. Furthermore, Bank Financial Initiative grossly violated the laws and regulations on cash circulation, failed to meet its obligations to depositors and other creditors and defaulted on the refinancing loan granted by the NBU.
The NBU Governor also drew attention of the court to the fact the lack of legislation allowing to resume the operation of a bank that has been declare insolvent and return funds that have been repaid by the Deposit Guarantee Fund to the depositors of this bank.
At the conclusion of the Court hearing Ms Gontareva said that: “We welcome the Court ruling confirming the legality of the NBU’s actions in respect of Bank Financial Initiative. By issuing this ruling the Court has backed the efforts by the NBU aimed at cleaning up and putting Ukraine’s banking sector back on a path to financial health. In addition, this would make it possible to bring to justice the owners of failed banks for driving their banks into bankruptcy.
On 5 October 2016, the Kyiv County Administrative Court allowed a claim filed by Invest Service LLC, which holds a 100% stake in Bank Financial Initiative, against the NBU under case No. 826/11415/16.
On 23 June 2015, NBU Board issued Resolution No.408 On Declaring CB Financial Initiative Insolvent.