Balances on accounts of Sberbank's, VEB's Ukrainian subsidiaries to be spent on payments to individual depositors - Ukrainian Deposit Guarantee Fund

KYIV. May 19 (Interfax-Ukraine) - The Ukrainian Deposit Guarantee Fund (DGF) plans to use the remaining balances on the accounts of the International Reserve Bank (IR Bank), Sberbank of Russia's subsidiary in Ukraine, and Prominvestbank (PIB), VEB.RF's Ukrainian subsidiary, on paying compensation to depositors.

The DGF said the funds will be enough to pay all individual depositors, including above the guaranteed sum.

"The balances on the banks' accounts should be enough for covering the fund's expenses on paying individual depositors a guaranteed compensation sum (third-priority creditors) and for settlements with fourth-priority creditors (customers having deposits exceeding 200,000 hryvni). Hence, the money should be repaid to individuals in full at the expense of the high-liquidity financial assets," the DGF told Interfax.

In the future, claims by banks' creditors will be met using funds from the sale and management of assets included in the liquidation estate, it said.

"The liquidation estate of the banks is being formed now in parallel with the pre-sale preparation of assets," it said.

As of the end of March 2022, IR Bank's accounts amounted to 5.826 billion hryvni and Prominvestnabk's accounts 4.483 billion hryvni.

As reported earlier, the Ukrainian Verkhovna Rada last week endorsed President Volodymyr Zelensky's decree on the expropriation of Sberbank's and VEB.RF's assets in Ukraine. In particular, the expropriation procedures shall be applied to a 99.772644% stake in Prominvestbank belonging to VEB.RF and 100% in IR Bank belonging to Sberbank of Russia.

Sberbank and VEB said they planned to dispute the Ukrainian government's decisions in arbitration courts.

Prominvestbank and IR Bank were deprived of licenses in Ukraine in February.

The official exchange rate as of May 19 is 29.25 hryvni/$1.