UPDATED: Cabinet of Ministers agrees to remove Sense Bank from market – Zhelezniak
The government made the relevant decision during a meeting
The Cabinet of Ministers gave consent for the state's involvement in removing the Joint Stock Company Sense Bank from the market after the National Bank of Ukraine (NBU) made a relevant decision on July 20 and initiated the nationalisation process.
This was reported by MP Yaroslav Zhelezniak.
"The government has decided to buy the bank for 1 UAH, and Sense Bank is becoming a state bank. The management body is the Ministry of Finance," he noted.
As earlier explained by Danylo Hetmantsev, Head of the Verkhovna Rada committee, the Individual Deposit Guarantee Fund, which today has introduced a temporary administration in the bank, is obliged to sell the financial institution's shares to the Ministry of Finance for 1 UAH and terminate the activities of the temporary administration within two days.
In addition to this, during this time, the Fund must appoint new governing bodies of the bank (the board and supervisory board) upon the proposal of the Ministry of Finance and with the consent of the NBU. The Ministry of Finance, after purchasing the bank's shares, is also required within a three-day period to engage an international auditor and carry out legal procedures to protect the bank's capital, including terminating obligations to former controllers and owners of significant shares, and possible claims for damage compensation.
He pointed out that all these procedures should be "imperceptible" to the bank's customers and the operational work of the institution should not change. The MP reminded that "previous crises have given the government a unique experience in maintaining continuity of operation during the nationalisation of systemic banks, such as PrivatBank in 2016 and Ukrgasbank in 2008." However, nationalisation is considered a justified measure only in cases of crisis, added Hetmantsev.
Background. It was previously reported by Mind that the NBU had begun the nationalisation process of Sense Bank.
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