An agreement signed to purchase JSC Sense Bank’s shares: the bank has become state-owned
On July 22, 2023, the Ministry of Finance of Ukraine and the Deposit Guarantee Fund (hereinafter referred to as the “DGF”) entered into an agreement to purchase 100% of the shares of the systemically important bank Joint-Stock Company Sense Bank (hereinafter referred to as JSC Sense Bank or the “Bank”), whereby the Bank has become state-owned.
This step will help protect the interests of the Bank’s depositors and avert threats to the Ukraine’s financial stability.
We’d like to note that on July 20, 2023, the NBU Board adopted a decision on withdrawal of the systemically important bank JSC SENSE BANK from the market, according to which the DGF Executive Board made a decision on the introduction of the interim administration in the bank.
The Cabinet of Ministers of Ukraine accepted the NBU’s proposal by passing the Resolution “On Participation of the State in Withdrawal of Systemically Important Bank from the Market”, and designated the Ministry of Finance of Ukraine to manage the corporate rights attached to JSC SENSE BANK’s shares owned by the state.
In accordance with the Law of Ukraine “On Households Deposit Guarantee System”, the DGF appointed the executives to run the Bank. The NBU approved the appointment of the respective candidates upon motion of the Ministry of Finance of Ukraine. They will take up their duties as soon as the DGF’s interim administration terminates.
Dmytro Kuzmin was appointed as Chairperson of the Management Board of JSC Sense Bank.
For reference. The Resolution of the Cabinet of Ministers of Ukraine dated July 21, 2023, No.739 “On Participation of the State in Withdrawal of Systemically Important Bank from the Market” was adopted in pursuance of the Law of Ukraine dated May 29, 2023, No. 3111-IX “On Amendments to Certain Legislative Acts of Ukraine regarding the Improvement of the Procedure for Withdrawal of the Bank under Martial Law”, the Laws of Ukraine “On Banks and Banking” and “On Households Deposit Guarantee System”.
The Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine regarding the Improvement of the Procedure for Withdrawal of the Bank under Martial Law” (hereinafter referred to as “the Law”) establishes a special procedure for withdrawal of a systemically important bank from the market if such a bank or its substantial stakeholder(s) is (are) subject to sanctions, including before the entry into force of this Law, imposed by the foreign states (except for the states that have carried out/are carrying out the armed aggression against Ukraine as defined by the Law of Ukraine “On Defense of Ukraine”) or by interstate associations or international organizations, and/or if the sanctions have been applied under the Law of Ukraine “On Sanctions”, that pose a threat to the interests of depositors or other creditors of the bank and/or banking system stability by depriving the sanctioned person of the right/restricting the sanctioned person’s right to dispose of the assets.
The law enables the state represented by the Ministry of Finance of Ukraine to participate in withdrawal of a systemically important bank from the market with respect to which the National Bank of Ukraine adopted a decision on the grounds, stipulated by the Law of Ukraine “On Banks and Banking”, and that arose during russia’s armed aggression against Ukraine.