On December 6, the Board of the National Bank of Ukraine approved the decision on declaring Bank Trast OJSC insolvent, the regulator’s press-office reports.

NBU reports that the worsening of the financial standing of Trast Bank had the systemic nature and is caused by many factors.

In particular, the significant amount of bank loans was disbursed on the territories, on which ATO is currently conducted.

 “Due to absence of loan servicing, the financial standing of the bank significantly worsened. The bank capital had negative value (as of December 1 – “-” UAH 135 mln). It, in its turn, caused violation of prudential regulations”, according to the message. 

As it is noted, the program of capital increase, developed by Bank Trast OJSC, did not contain any confirmation of the possibility of implementation of planned measures for improvement of the financial standing of the bank within set deadlines. 

 “The shareholder of the bank negotiated the possible bank sale with several investors. However, the National Bank did not receive the official set of documents for approval of acquisition of the major shareholding in Bank Trast OJSC”, the press-office reports.

 “Since July 2, 2016, Bank Trast had restrictions for attraction of deposits of individuals. Meanwhile, in late October, in spite of the ban from NBU, the bank renewed the attraction of deposits of population at excess interest rates”, according to the message.

According to NBU data, 96% of depositors of Bank Trast PJSC will receive their deposits in full size, as its amount does not exceed the amount of UAH 200 ths, guaranteed by the Individuals’ Deposit Insurance Fund. The total guaranteed amount of reimbursement is UAH 552 mln.

Ukrainian businessperson Vladimir Avramenko (78.9%) and RF citizen Sergey Beliaev (16.1%) are the owners of the major shareholding in the bank.

In the meantime, in mid-2015, RF citizens Ilya Yurov, Nikolai Fetisov and Sergey Beliaev were the shareholders of the bank.