The DGF stopped payments to the ninth line of creditors of Concorde Bank despite sufficient funds on the accounts - ex-chairman of the bank's board

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. This was reported to UNN by the former chairman of the board of Concord Bank Yuriy Zadoya.

At the end of December last year, the bank's co-founder, Olena Sosiedka , reportedthat creditors from the 9th line of the register of accepted creditors' claims of Concord Bank had started receiving payments. The decision to partially satisfy the claims of 72 creditors in the amount of UAH 57 million was made on December 11.

Since then, the Deposit Guarantee Fund has paid out only a quarter of the funds to the 9th stage.

"The Fund started to pay off creditors from the 9th stage, but payments were suspended on December 21, 2023. We don't know why the payments are not being made, because before the liquidation process began, Concorde was a successful, profitable bank, and now there are enough funds to pay off all debts in all stages," said Yuriy Zadoya, who is also a member of the 9th stage of the register of accepted claims of Concorde's creditors.

Thus, the debt to the creditors of the 9th stage amounts to about UAH 171 million.

At the time of the liquidation, Concorde was a profitable bank, and it still has sufficient funds in both local and foreign currencies on its accounts, as well as liquid government bonds.

In response to a request by UNN, the Deposit Guarantee Fund reported that as of February 1, 2024, almost UAH 596 million had been paid to depositors of Concord Bank, which is 89.4% of the total amount. The DGF assures that payments to all creditors continue, although this is not true. And the Fund ignores UNN's inquiries about the reasons for the suspension of payments.

Add

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. This year, 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, owners and shareholders of banks may appeal against 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 has not been regulated in Ukraine. According to Olena Sosedka, co-owner of Concord Bank, at the time 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. However, the process of bank liquidation is strictly regulated by law and can generally take up to three years.