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Ukrainian president signs law on reimbursement of defrauded deposits

The state will pay Mykhaylivskyy Bank's clients over 1bn hryvnyas.

Ukrainian president signs law on reimbursement of defrauded deposits
Photo: president.gov.ua

President Petro Poroshenko has signed Law of Ukraine "On amendments to several laws of Ukraine on reimbursement for individuals affected by fraud in banking and other financial services through the deposit guarantee system".

In particular, the law will make the clients of Mykhaylivskyy Bank, who invested in Investytsiyno-Rozrakhunkovyy Tsentr Ltd. and Kredytno-Investytsiynyy Tsentr Ltd. under financial loan agreements, entitled to reimbursement.

According to the president's website, Mykhaylivskyy Bank's swindling scheme affected 14,000 people the majority will now be able to claim reimbursement of up to 200,000 hryvnyas through the Deposit Guarantee Fund. The total amount of reimbursement will reach around 1.2bn hryvnyas.

The law introduces a mechanism which is expected to prevent similar swindling schemes from repeating.