Not everyone will get their money back: The Deposit Guarantee Fund explains who will be left without a deposit in case of bank liquidation
20 August 2024 10:22
In the event of a bank’s liquidation in Ukraine, not all of its customers are guaranteed a refund. Under current law, some will lose their money. This was explained by the Deposit Guarantee Fund on a special Fb page dedicated to financial literacy, reports "Komersant Ukrainian"
Thus, the fund does not guarantee the return:
- deposits of legal entities;
- amounts less than 10 hryvnias;
- deposits in precious metals;
- deposits on special terms that are not available to all customers;
- funds in trust management of the bank;
- deposits secured by a pledge (for example, for a loan);
- money from savings or deposit certificates of the bank.
Trust management is when a customer instructs a bank to invest his or her funds for profit.
A savings certificate is a document that confirms a deposit to a bank and the right to receive it back with interest.
At the same time, if the National Bank of Ukraine decides to close a bank, those whose deposits are not guaranteed may file claims with the DGF as creditors of the bank. Creditors are those who have documented financial claims against a bank. Such claims may be satisfied from the proceeds of the sale of the bank’s property in the course of its liquidation.
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