Attempt #2: NBU has developed a draft law that will allow the nationalization of “Sens Bank”
The National Bank of Ukraine wrote and submitted to the parliament a draft law, the adoption of which will allow the state to nationalize Sense Bank.
The relevant document, as well as the accompanying letter to the specialized committee of the parliament, is at the disposal of Economic Truth.
The draft law proposes to amend the Civil Procedure Code, the Economic Code, the Code of Administrative Procedure of Ukraine, as well as the laws “On Banks and Banking” and “On the Deposit Guarantee System of Individuals”.
The key change proposed by the NBU – oblige the regulator to declare the bank insolvent and withdraw it from the market if if Ukrainian and international sanctions are applied against the owners of such an institution.
We will remind that Ukraine and the EU applied sanctions against the key shareholders of “Sens Bank”, in particular Mykhailo Fridman and Piotr Aven.
This means that after the adoption of this draft law, the NBU will be obliged to declare “Sens Bank” insolvent and offer the government to nationalize this bank. If the government agrees to nationalization, it will be carried out under a simplified procedure.
Thus, the nationalization of a systemically important bank will take place without its recapitalization by the state. The bank’s shares will be sold to the government for 1 hryvnia.
Also, in the course of nationalization, the state will not carry out the bail-in procedure – the exchange of the bank’s obligations to related parties for additional bank shares. Such obligations of the bank (for example, deposits of its owner) will simply be canceled, and the funds themselves will be included in the income and capital of the institution.
In addition, the draft law makes changes to a number of codes and other laws, by which it is determined that the only possible way to compensate the losses to the sanctioned owners of the nationalized bank can only be reparations from Russia.
We will remind you that earlier the Rada already passed the law, which simplified the procedure for nationalizing systemically important banks during the war. At that time, the only reason for such nationalization was to determine the bank’s liquidity problems.
Interlocutors of the EP in the regulator and the parliament claimed that the purpose of the adoption of that law was the nationalization of “Alfa Bank” (from December 1, 2022 – “Sens Bank”) of Russian oligarchs Mykhailo Fridman and Piotr Aven.
However, as the EP wrote, the situation with the liquidity of “Sens Bank” began to improve in November-December 2022. Because of this, the state could not apply the law and withdraw the bank from the market. Therefore, it became necessary to develop new changes to the law that would allow the nationalization of the last large bank of Russian oligarchs operating in Ukraine.
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