June 19, 2023
Press Release
Deputy Prime Minister of Ukraine for Innovation, Education, Science and Technology and Minister of Digital Transformation Mykhailo Fedorov and Managing Director of Deposit Guarantee Fund (hereinafter – the DGF) Svitlana Rekrut held a joint briefing and signed a Memorandum of Cooperation.
The teams of the DGF and Ministry of Digital Transformation are working on a new service in Diia public services web portal (a mobile app, which is a brand of e-governance in Ukraine). Within a short period, Ukrainians will be able to submit an application in the app with just a few clicks and receive guaranteed compensation from the DGF for their deposits in insolvent banks.
The new service will enable the depositor to check the amount to be paid, and to choose an existing or open a new eSupport account in one of the DGF agent banks for the remittance of funds.
‘Even in the face of the full-scale war, we keep building the most convenient state in the world. By the end of the year, we plan to digitize 100% of the most popular government services. Our team is currently working on dozens of new services including the one to reimburse funds to insolvent banks’ depositors. Today, these are 1.4 million accounts of Ukrainians worth about UAH 3.2 billion. Our cooperation with the Deposit Guarantee Fund will enable Ukrainians to receive their funds in a few clicks without any papers and trips to the bank. It will be a user-friendly and fast service. Currently, we are working on the service in Diia and soon it will be launched for all depositors,’ said Mykhailo Fedorov.
Deposits of individuals (including individual entrepreneurs) in all banks of Ukraine are protected by the Deposit Guarantee Fund. If one of the banks is withdrawn from the market, depositors receive guaranteed compensation in the full amount of the deposit including the interest accrued.
‘The guaranteed reimbursement of the deposits of individuals in the event of bank failure is one of the foundations on which the trust of Ukrainians in the banking system rests. Over the entire period of its existence, the DGF has paid over UAH 103 billion in compensation to Ukrainians, of which UAH 7.6 billion was paid during the full-scale invasion of the Russian Federation. It is important for the DGF not just to pay out funds no matter what, but also to make this process as comfortable for the depositors as possible. To this end, as a first step last year, we launched the remote payments service, which today is implemented by four of our agent banks. And today, we are testing a new service that will simplify the procedure for the depositor to receive the funds due to him or her from the DGF through the Diia application as much as possible,’ noted Svitlana Rekrut.
Recall that from April 13, 2022, when the Law of Ukraine ‘On Amendments to Certain Laws of Ukraine on Ensuring Stability of the Household Deposit Guarantee Scheme’ entered into force, retail deposits in the DGF member banks are guaranteed in full for the period of martial law and three months following its termination or cancellation. Three months after the termination or cancellation of martial law, the guaranteed amount of reimbursement will be UAH 600,000 for one depositor in one bank.