About Deposit Guarantee Fund

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   In 1998, the President of Ukraine signed the Decree ‘On Measures to Protect the Rights of Physical Persons as Depositors of Commercial Banks in Ukraine’ which approved the establishment of the Deposit Guarantee Fund and procedures regulating the use of the Fund’s resources.
On September 20 2001, the Verkhovna Rada (Parliament of Ukraine) approved the Law ‘On Deposit Guarantee Fund’, which took effect on October 24, 2001.

         Law of Ukraine “On Deposit Insurance Fund” No. 2740-III of September 29, 2001.

   The Fund is a specialised government institution of public administration in the deposit guarantee sphere.
The main objective of the Fund is protecting the rights of individual depositors (natural persons) to the national banks of Ukraine and the branches of foreign/international banks in Ukraine.

            The Administration Board is the governing body of the Fund.

   The Fund reimburses for deposits to the Fund member/temporary member banks in UAH or foreign currencies of a value no higher than UAH 150,000 per individual depositor to every member bank, or the branch of an international/foreign bank in Ukraine from the date of the deposit inaccessibility. No deposit of a value under UAH 1 may be reimbursed.

            The Administration Board may extend the compensation by a special decision.

            The depositors are entitled to reimbursement in UAH at the Fund’s cost from the date of deposit inaccessibility.

   Deposit inaccessibility is the depositor’s inability to receive the deposit as specified in the deposit agreement from the date of the appointment of the liquidator of the Fund member/temporary member bank.

   The Fund members are national banks and branches of international/foreign banks in Ukraine duly licensed and certified as Fund members. “VAT Derzhavniy Oschadniy Bank Ukrainy” (the National Savings Bank of Ukraine) is not a member of the Fund.

            The Fund members hold the membership certificate.

   In the case of a member’s failure to adhere to the Law of Ukraine “On the Deposit Insurance Fund”, the bank (the branch of an international/foreign bank in Ukraine) is transferred to the ‘temporary member’ group and receives the temporary membership certificate.

            The Fund temporary members hold the temporary membership certificate.

   The Fund does not reimburse for the deposits in a bank (the branch of an international/foreign bank) with the temporary membership funded after the bank acquired the temporary membership status.

   Following the bank’s transfer to the ‘temporary member’ group, the bank shall inform potential depositors in writing, when signing a deposit agreement, that the Fund does not guarantee their deposits.

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