The Deposit Guarantee Fund of Ukraine has reported an unprecedented number of applications from investors interested in acquiring two insolvent banks, Motor-Bank and First Investment Bank. These institutions were previously owned by Vyacheslav Bohuslaev, the former head of Motor Sich, and Evgeny Giner, a Russian businessman.
According to Olga Bilai, the head of the fund, eleven investors have submitted applications, marking a record high. Some of these investors have expressed interest in both banks. Options for investors include purchasing the insolvent banks directly or acquiring a transitional bank created from their assets, as well as the possibility of transferring the assets and liabilities of the insolvent institutions to another bank before their liquidation.
Among the interested parties, five are banks and six are non-banking institutions, including foreign companies. Bilai noted that non-banking institutions must undergo preliminary qualification with the National Bank of Ukraine (NBU). All investors have already submitted the necessary documentation to the NBU.
The fund plans to continue the investor selection process until approximately mid-March, after which the NBU will provide assessments of the candidates. Following this, the Deposit Guarantee Fund will determine the successful investor and obtain feedback from the Antimonopoly Committee.
Bilai stated, “We aim to finalize the agreement by April 17-18.” This timeline is part of the competitive selection process for both banks.
It is important to note that on February 20, the Deposit Guarantee Fund introduced temporary administration in Motor-Bank and First Investment Bank after the NBU declared them insolvent. Subsequently, the fund began seeking investors willing to integrate these banks into their business models to prevent their liquidation.
On March 12, the fund commenced payments of guaranteed amounts to depositors of these banks.
Motor-Bank was owned by Vyacheslav Bohuslaev until its nationalization on September 10, 2024. He is currently detained in Kyiv’s pre-trial detention center, facing charges related to collaboration with Russian interests and involvement in a terrorist organization, as per Security Service of Ukraine materials.
As of January 2024, the primary shareholder of First Investment Bank was Evgeny Giner, the president of the CSKA football club. His shareholding was later nationalized by the state.
For more information about the Deposit Guarantee Fund’s activities and the process for recovering deposits from insolvent banks, refer to the interview with Olga Bilai published by RBC Ukraine.
The Deposit Guarantee Fund of Ukraine has seen a record number of investor applications for two insolvent banks, Motor-Bank and First Investment Bank. The selection process is ongoing, with plans to finalize agreements by mid-April.