Chronicles cleaning of the banking sector: fictitious scheme nearly a billion

Хроники очистки банковского сектора: фиктивные схемы почти на миллиард

Хроники очистки банковского сектора: фиктивные схемы почти на миллиард

A period of change which began with the end of 2013, generated in the economy and the banking sector of the country not only a deep crisis since independence, but the beginning of a new stage of development of the banking system of Ukraine. A feature of this stage, as previously noted, is the so-called “cleansing” — the reduction in the number of banks, which had for the period. “Purification” — actions aimed at streamlining the banking business that be carried out on international standards of transparency, accountability, risk management, financial viability and sustainability, rather than oligarchic model of banking, with all its consequences. Because the conventional way of doing banking business in Ukraine to 2014 was characterized by the specifics of the business at that time, namely, large-scale lending to related parties, resulting risks and losses, opaque ownership structure when the real owners are hidden behind a chain of nominee Directors, window dressing of financial reports, a fictitious correspondent accounts in foreign banks. Also be practiced politically motivated lending by state banks, which led to significant losses and further massive injections of public funds; money laundering as the primary activity of the Bank.

As noted on the official website of the Fund of guaranteeing deposits of individuals of Ukraine in the process of liquidation of insolvent banks, JSC “VTB BANK”, JSC “BANK Boguslav”, JSC “VTB BANK”, revealed a number of violations in the amount of almost a billion hryvnia.

JSC “BANK Boguslav”

In JSC “BANK Boguslaw” through schemes loans to related parties, were withdrawn more than 300 million UAH. The total carrying value of assets of JSC “BANK Boguslaw” at the time of approval of the liquidation estate amounted to 623 million UAH, while the value of the assets amounted to UAH 242 million, that is the price on paper was lower by more than 2.5 times. The total amount of akceptujemy creditors of the Bank amounts to 228 million UAH, of them repaid 28 million UAH. Depositors of the Bank as of December 1, 2018 paid almost 178 million, which is 97% of the amount of obligations to them. In the implementation of the procedure of liquidation of JSC “BANK Boguslaw” revealed that in 2016-2017, the Bank has provided credit facilities to the companies on various grounds linked and or with the Bank. Installed, in particular, that the borrowers did not have their own monetary income sufficient to service the loan debt and operated exclusively due to the resulting credit.

Хроники очистки банковского сектора: фиктивные схемы почти на миллиард

The funds received from JSC “BANK Boguslav”, these companies were transferred to the accounts of different businesses that are open in this and in other banks — on the basis of economic contracts, with signs of fictitiousness. There is reason to believe that the creation of the borrower companies were fictitious and they did not have to return loan funds.

Check of the enterprises-depositors showed that of the property transferred to the Bank Deposit, is not available, and most of the pledgers are not detected at the addresses specified in the contracts and in the Uniform state register of legal entities, individuals-entrepreneurs and community groups. In the end, the estimated value of the loan portfolio of borrowers-legal entities of the Bank were more than two times less than the stated “on paper”: the statement of accounts as at the date of approval of the liquidation estate, the outstanding debt on loans to legal entities amounted to 578 million UAH, out of which 502 million UAH. was backed by security, but the estimated value of these loans amounts to only 211 million. Thus, the share of liquid collateral accounts for only 24% of the total amount of security.

PJSC “CB “Investbank”

Analysis of financial transactions of an insolvent PJSC “CB “Investbank”, carried out by an authorized person of Fund of guaranteeing the deposits, showed that about 200 million UAH were withdrawn from the Bank by granting loans to enterprises with signs of fictitiousness. In addition, the Bank has concluded numerous insurance contracts with a “dummy” insurance company and carried out the procurement of consulting services, the only confirmation which the acts of transfer and acceptance, together with the amounts, but without a date. For today at the expense of the funds received by the Deposit guarantee Fund in liquidation and sale of property of the alleged creditors for the total amount 206,58 million UAH is extinguished only of 5.79 million.

Хроники очистки банковского сектора: фиктивные схемы почти на миллиард

The carrying amount of the assets included in the liquidation mass of the Bank is 445,01 million. Estimated value of the assets was determined by independent appraisers, and more than twice lower than the amount indicated in the accounting records. More than 80% of the amount of the liquidation estate — the loan portfolio of legal entities, expected to cost nearly four times less than the “on paper”.

During the implementation of the interim administration by the authorized person of Fund of guaranteeing the deposits discovered that PJSC “CB “Investbank” was published a number of credits to enterprises which have fictitiousness signs, because they have a little momentum, minor capital and have no assets. To secure the loan contracts transferred to the illiquid land plots of agricultural purpose on the territory of Boryspil district of Kyiv region, which is much too high. All these companies are linked, as evidenced by the contract of transfer of debt from one enterprise to another, the cooperation with the same partners and counterparties, and collateral is the same property guarantors. The performance of each of the companies even at the time of treatment in PJSC “CB “Investbank” with the petition for granting of the loan testified about their inability to repay the debt, but that hasn’t stopped the credit Committee of the Bank. One of OOO, for example, a loan was granted, which is 13 times higher than the annual turnover of funds. Another enterprise in the state which is only one man, it opened a revolving credit line in the amount of 400 thousand dollars. USA. The total debt of these enterprises to PJSC “CB “Investbank” is about UAH 200 million.

JSC “VTB Bank”

In the implementation of the guarantee Fund liquidation of JSC “VTB BANK” identified unfounded re-registration of ownership of the property for more than 105 million UAH. So, 26.12.2018 found that 46 units of real estate located in the Bank’s balance sheet in 2015, disappeared from its assets. Further clarification of the circumstances showed that these objects were re-registered by the state Registrar of the Dnieper branch of one of the utilities to a physical person on the basis of “additional decision of Industrial district court of Dnipropetrovsk in civil case No. 202 / 9477/14-C” from 15.01 .2016 g. December 15, 2018, that a natural person using the same state Registrar all 46 of the above-mentioned objects have been made as authorized capital re LTD, was 30.11.2018 g.. with a registered capital of 1 thousand UAH in the river.

It should be noted that to prevent in the banking sector such fraudulent activities, enhance confidence in the banking system, the national Bank of Ukraine continues active work on increasing transparency of the banking system for depositors and investors. To ensure appropriate standards of banking, NBU expands the list of data published by banks and regulators, and reflect the state of the banking system of Ukraine.

Recall that the financial stability Board created a working group composed of representatives of NBU, Ministry of Finance of Ukraine of Fund of guaranteeing the deposits of individuals and international experts to develop principles for restructuring non-performing loans, which were formed in the process of manifestation of crisis phenomena in three banks in the public sector of Ukraine.