Minister of Finance of Ukraine does not intend to abolish state guarantees for deposits at Oshchadbank

The document published today in the media under the title "Development strategy for state-owned banks" is not an official document, nor is it a Development strategy for state-owned banks agreed with or approved by the Ministry of Finance. It also does not reflect the policy of the Ministry of Finance and the dedicated working group created to elaborate such a Strategy on the development of state-owned banks. 

Among other points, time parameters presented in the published document are not in line with the actual data. It must also be noted that the Ministry of Finance of Ukraine presently does not intend to abolish the state guarantee for deposits at the Oshchadbank. 

The state guarantee for deposits at the Oshchadbank is valid and fixed in the current legislation - art. 57 of the Law of Ukraine "On banks and banking activity". There are currently no reasons to review this regulation. Any amendments to this regulation are only possible via corresponding amendments in the legislation approved at the supreme level of public administration. The Ministry of Finance now presents the opinion that such amendments are not necessary. 

The Oshchadbank is now successfully pursuing its mission to restore the trust to the Ukrainian banking system and to keep citizens’ financial saving. It is also demonstrating significant positive figures reflecting a growth of its resources due to deposits of citizens. In 2015 the Oshchadbank completely re-payed recapitalization loans received from the National Bank of Ukraine totaling UAH 5.5b, UAH 3.5b of this amount were re-payed before the maturity date.

In 2015, the Oshchadbank successfully re-profiled its foreign loans. It is also increasing its capital using its subordinate debt, demonstrating positive operating profit and retaining its leading positions in all core activities.

The Ministry of Finance supports the Oshchadbank and other state-owned banks and does not intend to make any steps which could undermine the confidence of customers in the reliability of the state-owned banks.