Parliament adopted a law on banks: what does it mean?


In the second reading, the bill was supported by 270 duties


Today, May 13, Verkhovna Rada adopted the second reading Banking regulation bill, Also known as “anti-Colomian”, and this eventually restricted the return to former owners of nationalized banks. 270 deputies voted “for”. What will change with the adoption of the sensational bill and why more than 16 thousand amendments were made?

Significant changes

As per the explanatory note of the Bill, it makes provision for the mandate of the process of removing the bank from the market, as the relevant decision of the National Bank cannot be quashed or suspended by the court’s decision. The “zombie” banks will not be able to return to the market, and the owners will not be able to return themselves to the bankrupt bank.

The document also limits the amount of potential compensation for former owners of banks, as it clearly defines the necessary conditions and procedure for obtaining such compensation. At the same time, as the National Bank notes, the bank’s owner will not become defenseless against the state. He will be able to go to court and, if he proves the illegality of the NBU’s decision, will be able to receive compensation for the loss. To do this, you should confirm in court that some capital remained in the bank at the time of withdrawal from the market.

What does Kolomoisky have to do with this?

The businessman believes the state illegally snatched a bank from him in late 2016 and demanded “compensation in one form or another” for it. They valued it at $ 2 billion. In this case, there can be several options – from withdrawal of Privetbank to payment for “moral damages” from Kolmoइski.

Now, the bill clearly defines that not a single problem bank can return to its former owners. Also by court order.

Piece of law

This law provides that the recognition of illegal nationalization “does not restore the status of the bank, which existed prior to the adoption of the Act / decision, including the legal status of this bank, and at the time of the adoption of such act / decision in the bank.” Does not restore status / rights of participating individuals ”.

At that time the individuals participating in the bank were declared insolvent and removed from the market, so they are entitled to compensation for the losses incurred. But the bill also significantly reduced the place for compensation. Its size will depend on the lost profit, the amount of which will be determined by the international audit firm, which is appointed by the court according to a different procedure.

That is, former owners of banks would not be able to “negotiate” with anyone in government about large amounts of compensation, for example, for moral damages.

In addition, the court’s ruling on compensation for former owners (for example, Prevbank) does not rule out an investigation into their potential misuse, questionable lending and refunds. This is significant, given that now the Ukrainian courts are considering more than five hundred cases related to the PrivaBank.

Read: Crisis or cleanliness: what is happening in Azerbaijan’s banking market

Why is the law so important

The legislation is the subject of long and difficult negotiations between Ukraine and the IMF on financial aid. Due to more than 16 thousand amendments made by Kolomisky’s associates, the final adoption of the law may be postponed for several months.

Deputies changed the rules to remove “corrective spam”. Therefore, before final consideration of the bill by more than 16 thousand amendments, only 241 remained, and the trial lasted for about half an hour. The latest version of the project was prepared jointly with IMF experts. Therefore, the introduction of amendments already in Parliament may promise problems with the IMF.

Now, after adopting the law on banks, Ukraine claims to receive loans from the IMF in the amount of approximately $ 5 billion over the next 18 months.

READ ALSO: New law on financial monitoring: for which bank accounts will freeze


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