What is covered by the Deposit Guarantee Fund

The Deposit Guarantee Fund (DGF) guarantees to pay out deposits to individuals, cash or non-cash money in Ukrainian or foreign currency received by a bank from a depositor (or received to an account of a depositor) under a deposit agreement or account agreement or under an issued registered certificate of deposit, including interests accrued thereon.

The DGF guarantees to pay out deposits to each depositor of a bank and the DGF shall refund the money in the amount of the deposit, including the interest as at the date of the commencement of the bank resolution procedure by the DGF, but the amount in question may not exceed the ceiling limit of the reimbursement for deposits set as of the said date regardless of the number of deposits in one bank.

The DGF guarantees to pay out deposits to each depositor of each DGF member bank, but the amount in question may not exceed UAH 200 000 in one bank.

The interest accrual on deposits shall be terminated on the last day prior to the commencement date of the bank resolution procedure by the DGF (in case of the decision made by the National Bank of Ukraine to revoke a banking license and liquidate the bank on the grounds specified in part two of Article 77 of the Law of Ukraine “On Banks and Banking” — on the date of the decision to revoke the banking license and liquidate the bank).

The DGF shall guarantee the payout to a depositor of a bank that has subsequently been reorganized, on the same terms and conditions as before such reorganization.

Deposits transferred to the bridge bank shall be guaranteed by the DGF on the same terms that had existed as of the date of their transfer.

The depositor shall have a right to receive the guaranteed amount of deposit at the expense of the DGF within the marginal guaranteed amount.

The DGF shall start disbursing the refunds to depositors in Ukraine’s domestic currency in the order and in the priority, established by the DGF, no longer than 20 days (for the banks with over 500,000 accounts in the database—no longer than 30 days) from the date of the commencement of the bank resolution procedure.

Payouts of foreign currency deposits shall be made in the national currency of Ukraine after recalculation of the deposit value at the official exchange rate of UAH to foreign currencies set by the National Bank of Ukraine as of the date of the commencement of the bank resolution procedure and the exercise of the provisional administration by the DGF. In case of the decision of the National Bank of Ukraine to revoke the banking license and liquidate the bank on the grounds listed in part two of Article 77 of the Law of Ukraine “On Banks and Banking”, the funds from a foreign currency deposit shall be refunded in the domestic currency of Ukraine after the conversion of the deposit amount at the official exchange rate of UAH to foreign currencies set by the National Bank of Ukraine as of the date of commencement of the bank liquidation.

The DGF shall complete the payout of the guaranteed deposits on the day of the document submission for making record in the Unified State Register of Legal Entities of liquidation of a bank as a legal entity.

PLEASE NOTE that in accordance with the second part of Article 77 “Revocation of the banking license and bank liquidation” of the Banking Law the National Bank of Ukraine has the right to revoke the banking license if:

1) it has established that the documents submitted by the bank to obtain a banking license contained inadequate information;

2) the bank has not had any banking transaction within a year from the day it was issued a license;

3) repeated breach by a bank of the laws covering the issues of anti-money laundering/combatting terrorist financing and the proliferation of weapons of mass destruction was detected.

Please be aware that in case of bank liquidation in accordance with part two of Article 77 of the Law of Ukraine “On Banks and Banking”, provisional administration is not introducted.

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