Concorde's creditors proposed to the DGF to sell the bank's government bonds and complete the process of its liquidation - a member of the initiative group

Members of the ninth line of the register of accepted creditors' claims of Concorde Bank have sent an open letter to the Deposit Guarantee Fund demanding that payments to them be resumed. If the DGF does not currently have enough funds for this, they propose to sell liquid government bonds owned by the bank. Yuriy Zadoya, a member of the initiative group and former chairman of the board of Concord Bank, told UNN in an exclusive commentary.

I, as a member of the initiative group representing the interests of the ninth line of the register of accepted creditors' claims of Concord Bank, appealed to the Deposit Guarantee Fund with a demand to resume payments of debts to creditors, which currently amount to about UAH 171 million

According to him, the members of the ninth payout queue signed a collective letter demanding that the Fund resume payments to them, as Concorde was a successful and profitable bank before the liquidation process started, and it had enough funds on its accounts to quickly pay off all queues of depositors and creditors.

Zadoya also added that the initiative group in its cover letter proposed to the Fund, in the absence of the amount necessary for the settlement, to sell 250 ,000 domestic government bonds (OVDPs) owned by Concorde. According to him, the nominal value of this package is UAH 250 million, and the nominal yield is 19.6%. 

The DGF has already received funds from the interest on these government bonds and the next payment is scheduled for April 3, 2024. According to Zadoya, the members of the 9th stage are asking to sell the government bonds immediately after the payment, and to use the proceeds to complete the bank's liquidation process.

We appealed to the DGF's management with a request not to hold people who once invested in a successful bank hostage to the situation. After all, while the DGF is enriching itself on interest from domestic government bonds and spending more than UAH 8 million a month on its maintenance, ordinary depositors cannot get their money back. Let me remind you that according to the law, it is the DGF's responsibility to protect depositors' rights

Add

Since December last year , the Deposit Guarantee Fund has stopped payments to creditors from the 9th line of the register of accepted creditors' claims of Concord Bank, despite the fact that before the liquidation process began, the financial institution was successful and profitable and had enough funds on its accounts to pay off all debts to all lines of depositors and creditors.

Among those who are detained is the charity exchange DobroDiy.

Concorde Bank shareholders called on the DGF to speed up the process, for which the DGF plans to spend UAH 50 million in the next six months alone. They promise to transfer the funds that will remain in the event of a faster liquidation to the Armed Forces of Ukraine.

Recall

Despite the war in Ukraine, the process of removing banks from the market has not stopped. Thus, as of February 24, 2022, the liquidation process was initiated against 8 banks. In 2023, for the first time in Ukraine, not only bankrupt banks but also profitable institutions were subject to liquidation and license revocation, including Concord Bank. The process of depriving a banking institution of its license takes place without a court. Of course, the owners and shareholders of banks may appeal the decision of the regulator, the NBU, after it has made a decision to liquidate the bank, but in general, the process of withdrawing a banking institution from the market, once it has been launched, is irreversible. 

In addition, the issue of liquidation of a profitable bank is not regulated in Ukraine. According to Olena Sosedka, co-owner of Concord Bank, when the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all the necessary payments in 2-3 weeks. But the process of bank liquidation is strictly regulated by law and can generally take up to three years.