Deputies Decided to Sell the State Oschadbank to Private Hands

Thursday, June 3, 2021
Deputies Decided to Sell the State Oschadbank to Private Hands

The Parliament has registered two bills, the adoption of which will allow to put up for sale the largest state bank - Oschadbank

In order to start the privatization procedure of Oschadbank as soon as possible, the Cabinet of Ministers and the head of the tax committee Daniil Hetmantsev registered two draft laws.

According to the documents, Oschadbank is proposed to become a member of the Deposit Guarantee Fund (DGF).

The texts of bills appeared on the governmental website. It is noted that the Deposit Guarantee Fund includes all Ukrainian banks, except Oschadbank. Financial institutions regularly make contributions to the Deposit Guarantee Fund so that in the event of the bank's bankruptcy, its depositors can receive part of their deposits.

According to the Deposit Guarantee Fund rules, clients of a bankrupt bank can get back a deposit of up to $7 300. The rest of the money is non-refundable. As for Oschadbank, it does not pay contributions to the Fund, but in the event of bankruptcy, depositors will be reimbursed all their money in full at the expense of the state. Other market participants do not like this significant competitive advantage of Oschadbank.

In addition, in order to launch the privatization procedure of Oschadbank, it is necessary that it be in the same conditions as other market players.

"For Oschadbank, the key is to continue cooperation with the EBRD, but this requires a number of preliminary measures on the part of Ukraine, namely the membership of Oschadbank in the Deposit Guarantee Fund," - said Deputy Head of the National Bank of Ukraine, Yuri Geletey.

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