The Individual Deposit Guarantee Fund when it audited assets and liabilities of bank Khreschatyk revealed facts of criminal violation by top managers of the bank, the fund has reported on its website.
The fund said that when due diligence of the bank's assets and liabilities was conducted temporary administration discovered many facts that contributed to weak profits and led to financial expenses.
Bank Khreschatyk signed several nonresidential premises management agreements on the economically unviable conditions. The premises belonged to the bank. According to the preliminary information, the firm that signed the agreements is associated with officials of the bank.
The conditions of the agreement to transfer premises with gross area of 366 square meters in Kyiv envisaged that the bank would receive UAH 5,000 of rental a month, with the remaining sum of rent rates paid to the manager. The agreement was signed in December 2014 for the period until December 2016.
The similar agreements for three facilities in Kharkiv were signed by the bank and the same private company. Over 10,300 square meters of nonresidential premises worth over UAH 81 million were transferred to management. The bank received UAH 30,000 every month as a founder.
The fund intends to file an application claiming criminal offense committed by top managers of bank Khreschatyk.
From May 27 the fund suspended payments to depositors of bank Khreschatyk. The list of depositors to pay funds in the period of the bank's liquidation is to be composed. Payments would be resumed no later than the fourth working day after receiving a decision of the National Bank of Ukraine (NBU) to annual the license and liquidate the bank.
The NBU on April 5 declared Bank Khreschatyk insolvent. The Individuals' Deposit Guarantee Fund introduced temporary administration until June 4, 2016.
The bank's depositors are 308,000 individuals, 98.7% of them will be fully reimbursed for their funds (up to UAH 200,000). The total amount to be recovered is UAH 2.8 billion.
The main reason for the bank's insolvency is the reluctance of other shareholders to invest in the capitalization of the financial institution. The NBU on the results of stress tests estimated the need for the bank recapitalization at UAH 1.25 billion by June 2017, including UAH 600 million by May 1 this year.
According to the latest data on the bank's ownership structure, its largest co-owners are Andriy Ivanov (37.44%), Mykola Soldatenko (24.24%) and Kyiv City State Administration (25%).
Ivanov is a junior partner of Kyiv Investment Group, Soldatenko is a former co-owner of Zaporizhstal, a minor shareholder of Industrialbank.
Bank Khreschatyk was founded in 1993. It ranked 18th among 123 Ukrainian banks on October 1, 2015 in terms of total assets (UAH 10.09 billion).