““Manual” Deposit Guarantee Fund against depositors. What did Hetmantsev planDraft Law No. 13007 restricts access to information, the rights of creditors and shareholders, deprives the right to appeal
decisions of the DGF in court and ignores obligations to the IMF. This may lead to loss of funding.”, — write: unn.ua
180-degree turnThe draft law registered by Hetmantsev envisages amendments to the legislation regulating the activities of the Deposit Guarantee Fund for Individuals and the National Bank. The head of the parliamentary tax committee submits it under the “sauce” of fulfilling the requirements of the Memorandum with the IMF.
However, behind the guise of regulatory clarifications lies the actual rewriting of the rules of the deposit guarantee system and a departure from the principles of democracy that are so valued in the European Union, the United States and the entire civilized world.
Hetmantsev’s draft law provides for strengthening the role of the National Bank in the management of the Fund. Thus, the DGF will become completely dependent on the regulator’s decisions. By the way, representatives of the NBU are currently members of the Administrative Board of the Fund, which, in particular, appoints and dismisses the management of the institution.
In addition, the MP proposes to deprive Ukrainians of access to public information about the activities of the DGF. That is, the public will no longer be able to control the legality of the Fund’s decisions.
No less odious is Hetmantsev’s proposal to reduce the time limit for appealing decisions of the Deposit Guarantee Fund to 30 days. With the restriction of access to public information, a combo effect is created, because depositors will not know about the decision that concerns them, and when they find out, they will not be able to appeal it, because the deadlines will be missed. In addition, 30 days is not always enough to prepare a high-quality lawsuit, lawyers say. Lawyer Dmytro Kasyanenko considers such a restriction a direct violation of civil law, and human rights activist Arsen Marinushkin considers it a manipulation aimed at avoiding the Foundation’s responsibility.
Hetmantsev also proposes to allow the Fund to independently develop internal regulations without согласования with the Ministry of Justice. That is, no one will check whether the DGF’s regulations comply with the current legislation.
But the legislator’s imagination did not stop there. He proposes to allow the DGF to withdraw funds from shareholders of a bank that is in the process of liquidation for violating the procedures for cooperation with the Fund, which violates citizens’ right to freely own property. That is, they will be limited in the time to apply, and if they miss it, the assets will remain with the Fund. Sounds like a reliable corruption scheme, doesn’t it?
Instead of guarantees – dependence on the NBUAs lawyer Yulian Khorunzhyi emphasizes, the draft law actually ignores the rights of creditors and focuses all attention on the interests of the Fund.
“After reading the text of the draft law, one gets the impression that creditors have been forgotten in principle. The procedure for withdrawing a bank from the market is created exclusively for the Deposit Guarantee Fund to satisfy its requirements and needs,” Khorunzhyi said during a discussion on the YouTube channel Ukraine Economic Outlook.
Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, also doubts the transparency of the Deposit Guarantee Fund for Individuals.
Given all the information I received during the development of the alternative draft law, I have no confidence in this institution. And we need to fix this
Risk of losing IMF fundingIn December 2024, the Ukrainian side made a clear commitment to the IMF not to change the distribution of roles and powers of participants in the financial system of Ukraine under martial law. This obligation is confirmed in the Memorandum on Economic and Financial Policy.
However, the bill proposed by Hetmantsev contradicts previously reached agreements.
In fact, one of the main requirements of the IMF in the context of the activities of the Deposit Guarantee Fund for Individuals is the introduction of an open competition for the position of Director-Managing Director of the Fund.
In addition, according to the agreements, the review of the DGF’s management mechanisms should cover the composition of the Administrative Board, as well as the DGF’s accountability, legal protection, the functioning of decision-making structures, and internal control. Which, by the way, Hetmantsev’s draft law does not have.
From international partnership to internal arbitrarinessHetmantsev’s draft law on the activities of the Deposit Guarantee Fund for Individuals not only narrows the rights of depositors, but also directly contradicts the memorandum with the IMF, the reform roadmap and the Constitution of Ukraine. Without transparent public control and independent oversight mechanisms, the Deposit Guarantee Fund can easily turn into a “hand-held” structure with unlimited powers. But maybe that was the legislator’s intention?
In the current situation, when IMF support is critical for Ukraine’s macrofinancial stability, the adoption of this draft law could jeopardize further funding and, in general, Ukraine’s reputation as a reliable partner.
It is shameful and traditionally shameful, because this is not the first time we have shown that we cannot withstand or fulfill anything, and we easily take on obligations