In the conditions of a full-scale war unleashed by Russia against Ukraine, it is very difficult to be sure of tomorrow. The trade war between the US and China, which may negatively affect global economic stability, does not add confidence either. The first consequences are already being felt - the euro has soared, breaking historical records. Therefore, in addition to military challenges, Ukraine also faces economic ones, and the country needs to withstand these turbulent times, writes UNN.
The most difficult thing is that in addition to external factors, internal factors also affect stability in the state. Oddly enough, the legislative initiative of the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, can undermine financial stability in the country. He is going to reformat the work of the Deposit Guarantee Fund for Individuals, on the one hand expanding the capabilities of the DGF, and on the other hand - narrowing the rights of depositors.
Remember 2008, when there was a so-called "bank fall", depositors were seized by panic and there were crazy queues near ATMs? And the main question that hung in the air then: "Will I get my money back?"
So, Ukraine is now at risk of returning to the past, now we are on the verge of a scenario where depositors will not know whether they will be able to get their money back if the bank "bursts".
Next week, the parliament may proceed to consider draft law on the activities of the Deposit Guarantee Fund for Individuals, submitted by the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev.
This document radically changes the rules of the Deposit Guarantee Fund for Individuals, which should take care of the return of funds to depositors of banks that are in the process of liquidation. Experts in the banking sector, as well as lawyers, point out that if the draft law is adopted, the DGF will turn from an independent financial shield into a manual, fully controlled political instrument.
Hetmantsev, under the guise of fulfilling the requirements of the International Monetary Fund, plans to push through parliament changes that will significantly limit the ability of the public, and most importantly, depositors, to monitor the activities of the Deposit Guarantee Fund and appeal its decisions. The deadline for filing complaints to the court is limited to 30 days. In addition, the bill significantly narrows access to public information about the Fund's activities, in particular its reporting, auctions, etc. And most importantly, the Fund gets the opportunity to take the depositors' funds if they miss the deadline for applying for compensation.
Such changes have significant corruption risks, which Hetmantsev himself obviously understands. After all, what else can be used to argue the haste in adopting the bill without the relevant conclusions of parliamentary committees, in particular, on anti-corruption policy.
Obviously, such a step may force depositors to think about the safety of their savings now. A sharp outflow of deposits, in turn, can destabilize the banking sector and a domino effect will occur, as a result of which the economy will crumble.
Trust in the banking system is the foundation on which everything rests. Ukrainians have already lost everything twice - in the 90s, as well as in 2008. It took years of reforms and cooperation with international institutions to revive confidence in banks. Now, one vote can throw the country back a decade, when all institutions were under the influence of political parties and business groups, and guarantees existed only on paper.